Project Differentiation

VALLEY STATE EMPLOYEES CREDIT UNION

Valley State Employees Credit Union was chartered in 1955 by a group of State of Michigan employees who believed they could benefit themselves and their fellow employees by putting credit union principles and practices to work. Their success encouraged others to join and over the years, Valley State has expanded to proudly serve not only State employees, but the Saginaw Valley State University campus community and alumni, and several business, association and organization groups as well. Our membership of almost 4,000 individuals includes adults, teens and children and we offer courteous, efficient service and quality financial products and services to all age groups. We strive to provide the opportunity for as many people as possible to join our credit union so they can secure a more sound financial future. Our members' financial well- being and high level of satisfaction with the credit union are our primary goals. We consider each member as a "member of our family" and "Valley State - Helping You Each Day" is not just a slogan, but a firm belief about how we should handle our members' business.

As a member-owned, not for profit financial cooperative, Valley State is committed to our members. We will uphold our fundamental responsibility to actively serve people within our field of membership and as appropriate, the communities they live in. We will treat all members with respect and dignity and we will offer honest, fair deals to all members at all times. We will deliver a range of services to the diverse economic and social makeup of our members and potential members. We will look for better ways to reach out to the un- or underserved in our field of membership. And we will continually, in all facets of operations, demonstrate the value of membership in Valley State Employees Credit Union.

We will monitor and communicate our service to our members in a meaningful way so that members, potential members, legislators, regulators and the community at large will understand and appreciate the unique role that member-owned financial cooperatives play in their lives.

Throughout Valley State Employees Credit Union's strategic plan, we will put forth every effort to enable our members to become financially self-sufficient and successful. We will place high importance on consumer education and the teaching of financial thrift.

This Statement of Commitment to Members is consistent with our credit union principles of "Not For Profit, Not For Charity, But For Service" and 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 I: Service to Members

Valley State Employees Credit Union strives to offer services and products designed to improve the economic and social well-being of all members from all socio-economic backgrounds, including our low- and moderate-income members, and return financial value to all those who participate in our member-owned financial cooperative.

Current or existing services

Interest Rate Equality - All members, regardless of the amount they have in their savings accounts receive the same dividend and interest rates. The same applies for loans. Members with past credit problems are not asked to pay a higher interest rate than other members. We strive to find out the reasons for credit problems and counsel the member as needed. At times, we may ask for additional collateral to reduce our risk. We also make loans for as little as $25 and we loan for older used cars that other institutions will not finance. In addition, we do not charge fees for the maintenance of small accounts nor do we charge dormant account fees.

Prime Shares - Regular savings account available for deposits, withdrawals, transfer of loan payments, and all other transactions.
Share 99 and Vacation Club Accounts - These accounts allow for deposit of funds separate from Prime Shares. Members save for any purpose for which they have set specific goals.
Christmas Club - Regular deposits free members from the burden of borrowing and enables them to have funds available for holiday shopping, trips and festivities.
Money Market Shares - A high-yield savings account permitting both deposits and withdrawals.
Individual Retirement Accounts - Traditional, Roth and Education
"Earnie the Early Bird" Credit Union Kids Savings Team - Children have lots of fun saving their money while developing good savings habits at the same time. Kids receive a goody bag filled with gifts at the time of opening and they receive a "reward" from "Earnie's Treasure Chest" every time they make a deposit of $5 or more. "Earnie" mails each child a welcome postcard when he/she joins and sends a birthday card greeting on the child's birthday.
Teen Savers Club - Savings and special services designed for children ages 13 to l7. Children may be eligible for ATM cards, audio response, low -limit MasterCard (children receive credit management instruction from the parent and the credit union before receiving the card), checking accounts, and cosigned loans.
Youth Certificate Program - Children and young adults under 17 years of age can purchase certificates with as little as $250 and they can add to the certificate in increments of $100 once per month during the 6-month term.
Sharedraft (checking) Accounts - No per check charges, instant carbonless copy of every check written, automatic deposit through payroll deduction, net pay or direct deposit, deposit by mail, 24-hour access with our NYCE ATM card, overdraft protection and line of credit plan, monthly statement for easy balancing, inquiries and transfers by phone and through VAL (Valley's Audio Line).
Certificates of Deposit - Terms of 6 to 60 months. Minimum purchase is $1,000 (with the exception of youth certificates and Education IRA certificates), fixed-rate, quarterly interest posted back into the certificate balance, automatic renewal.
Loans for any provident or productive purpose - Our loan program provides affordability and convenience and our approval process is quick - usually the same day. Types of loans include signature and secured loans, first and second mortgages, home equity fixed-rate and variable-rate open-end lines of credit, installment and open-end secured and unsecured loans, line of credit plan and revolving credit plan.
Indirect Automobile Financing Program - Enables members to finance their new or used vehicle right at the dealership. We presently have indirect finance partnerships with 15 dealers and add new dealers whenever possible.
Refinanced Loan Program - Members may qualify to refinance their high-rate loans at other institutions with Valley State. We offer financing at 2% below their current rate or at the floor limit of 7% APR.
MasterCard - low fixed interest rate, no annual fee, 25 day grace period on purchases, free travel accident insurance, cash advance capabilities with no credit union fee, SCORECARD bonus points, easy balance transfer, and automatic repayment from VSE savings or checking.
Special Services for Retirees - Retirees can take advantage of one of two programs: Valley Rewards includes free checking and check imprinting, no monthly fee and no per check fee. Valley Rewards Plus is available to members having direct deposit of retirement or social security benefits and entitles the member to all of the above plus free travelers checks and credit union payment of annual AARP dues.
NYCE ATM Cards - Offers withdrawal, deposit and transfer transactions at ATMs worldwide and Point-of-Sale and electronic checking features with merchants displaying the NYCE symbol.
Payroll Deduction, Net Pay and Direct Deposit - All automatic methods of making deposits, loan payments and distributing one deposit among several different savings and loan accounts.
Automatic Bill Payment Plan - Payments of recurring bills through the Automated ClearingHouse (ACH/EFT)

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Project Differentiation
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Cash by MasterCard - Cash advances at ATMs across the nation. No credit union advance fee is charged.
VAL (Valley's Audio Line) - Audio response service with local and toll-free phone numbers.
CUShopper Service - Offers members-only pricing on brand name products and merchandise. Members can shop and arrange Valley State financing by toll-free telephone or in a secure online environment through the Internet.
24-hour Loan Application Service - We accept applications and requests for loans in person, by phone, by mail, on our after-hours message service, at our web site and by e-mail. In many cases, we have to ask our member to complete a formal application some time during the loan process but for our members' convenience, we still accept requests in every form and by every available method.

Credit Life and Disability Insurance
AD&D Insurance with the first $1,000 free
Deposits by Mail
Discount Bonus Shopping Service
Drive-through (Saginaw Office)
Night Depository (Saginaw Office)
After-hours Message Service
Sam's Club Memberships
Family Legal Services Plan
MasterCard Skip-A-Payment (January)
Student & Parent Family Federal Loan
Program Applications Money Orders

Cancer Insurance
Term and Whole Life Insurance Plans
Fax Service
Travelers Cheques
Withdrawal by Mail and Telephone
Toll-free long distance telephone service
Notary Public Service
AAA Auto & Homeowners Insurance
Loan Skip-A-Payment (September - December)
NADA and Redbook Car Pricing Guides
Saginaw Valley State University Annual
Scholarship Awards

New services planned for the future

Debit Card or MasterCard Check Card
Cashiers Checks
Online Newsletter
Home Banking
Add Credit Union Village, Carfax and CUCarbook to our web site
Expand SEG participation to small and large groups so that as many people as possible can utilize the unique benefits of credit union membership
Continue making progress toward our goal of becoming a fee-free credit union

SECTION II: Member Education

Valley State Employees Credit Union is committed to member and consumer financial education. In addition, we are committed to educating members and consumers, alike, about credit union uniqueness, philosophy and values.

Current programs

Monthly newsletter - explains products and services and contains important consumer information/education topics.
Resource library in credit union lobbies - information about home-buying, preventing scams, insurance coverage, and other consumer topics.
Web site - provides members and potential members with extensive information about our credit union, about products and services, special events, financial rates, how to join, and invites members to e-mail us with their concerns, questions, complaints and suggestions.
Credit counseling referral - members seeking assistance and those denied loans are referred for credit counseling.

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Bankruptcy information
Financial and money management education for children and young adults - we provide brochures, special saving and certificate programs and other services to teach youngsters about the importance of prudent money and credit management.
Encouragement of family membership - to enable every member of one's family to join and have the opportunity to take advantage of the extensive benefits of credit union membership.
Promotion of credit union uniqueness and philosophy - we participate in the following annual events:

Employee education, training and certification - to enable our employees to better enjoy their credit union employment and serve our membership more effectively. Employees participate in STAR and MERIT programs and our management staff is enrolled in the CUNA Management School in Madison, Wisconsin. In addition, employees are encouraged to enroll in business-related classes at our local university and community college with the credit union paying 75% of the tuition and books. In many cases, the credit union will pay for all tuition and expenses.
Official Family continuing education - almost every member of Valley State's official family has completed the full offering of VAP courses. Official family members also attend the annual MCUL Exposition and other conferences that will enable them to better perform the responsibilities of their positions.

New programs planned for the future

Expand on-site visits to SEGs and current member groups.
Expand and offer "traveling credit union services" to outlying areas within our sphere of operation.
Partner with other credit unions to offer financial education seminars to members and potential members.

Section III: Involvement/Governance

Valley State Employees Credit Union will endeavor to preserve the credit union democratic principles, including demographic representation and volunteer participation in credit union activities.

Current programs

Annual Meeting - enables members to participate in the affairs of their credit union and offers them an opportunity to bring their concerns, comments and suggestions to the floor.
Board and Supervisory Committee elections - all members are encouraged to attend so they can participate in democratic control of their credit union through equal voting rights.
Committee involvement - members of the official family and staff serve on various and numerous committees including Asset/Liability Management, Marketing and Education, Nominating and Elections Committee, Planning and Budget Committees, and Building Committee. The membership at large is also invited and encouraged to serve their credit union in a volunteer capacity.
Member surveys - members are periodically surveyed so we can receive feedback about our services, products, rates, efficiency and employee/member relations. Member responses are used to generate new or enhanced services, eliminate fees where possible and services where indicated, enhance relationships and resolve unsatisfactory situations.
Annual planning conference - official family and staff meet to exchange ideas, share member concerns, review services and fees, and plan services, products, improvements, marketing and growth for the future.

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Project Differentiation
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Financial checkups - periodic meetings are held to discuss our progress in meeting our strategic planning goals and to review the financial health of the credit union. Committee reports, the annual budget, financial statements, growth statistics, member surveys (if available) and our strategic plan are used to measure our performance.

Section IV: Diversity

Valley State Employees Credit Union will recognize 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

Board and committee representation - Valley State is committed to diversity and the credit union actively seeks volunteers representing all segments of our membership.
Member market segmentation - we utilize internal and outside resources to help determine the demographic makeup of our members and potential members so that products and services can be designed to meet their needs.
Equal Opportunity Employment - we actively seek to fill positions without regard to race, creed, religion, or socio-economic status.
Low deposit limits - our programs help members regardless of income, get started with a savings plan with as little as $5. Systematic deposits are encouraged. Members wishing to have payroll deduction can sign up with as little as $2.00 biweekly.
Full service opportunity - members become eligible to apply for all of the credit union services, including loans as low as $25 and financing older vehicles, as long as they maintain $5 in their regular savings account.

Section V: Commitment to the Credit Union Movement and other Cooperative Activities

Valley State Employees Credit Union will work to build and strengthen our unique credit union movement by providing financial and in-kind resources to others within the credit union community, and by actively advocating the credit union difference at all levels of government and in other appropriate public forums. In addition, Valley State Employees Credit Union will strive to build and strengthen relationships with other sectors of the national cooperative movement.

Current activities

Member - Michigan Credit Union League
Member - Mid-Michigan Chapter of Credit Unions
Member - NASCUS
Continuing education for staff - the credit union helps pay for post high school education so that employees may further their careers in the credit union movement.
Board and committees training - our board and committees participate in many conferences and educational seminars sponsored by our League and other credit union-related groups to develop expertise in the fulfillment of their duty to the membership.
Information sharing - Valley State welcomes the opportunity to share information about products and services with other credit unions and actively seeks the expertise of others in the credit union movement.

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Project Differentiation
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Support of credit union affiliates - Valley State is fully supportive of the Michigan Credit Union League, our local chapter, Michigan Cencorp, League Supply, CUMIS Insurance Companies, and other credit union-related entities. We buy, use and offer services and products from all these groups whenever and wherever possible..
Annual Member Appreciation Day - we host a picnic, children's activities and give away back-to-school essentials as our thanks to our members for their loyal support. This event fosters the membership's belief that credit union membership is unique and promotes continued support of the credit union movement.

Section VI: Public Service/Corporate Citizenship

Through direct financial support or other in-kind contributions to worthwhile local organizations, and by participating in public service activities, Valley State Employees Credit Union strives to be an active partner in our community. We recognize that practicing good Corporate Citizenship supports the Credit Union Philosophy of People Helping People. Furthermore, it will help raise the overall level of social and economic well-being of those in our community, help to strengthen ties within the community, and better position us to reach out and serve - as only credit unions can - those people in greatest need of affordable financial services.

Current projects

Chamber of Commerce
Council against Child Neglect
United Way Campaign
Children's Leukemia Foundation
Muscular Dystrophy Association
Coats for Kids
Holiday Harvest Food Drive
Fraternal Order of Police Drug Prevention Program
Firefighters Organization

Valley State's official family and staff participate in coaching children's sports programs, provide transportation and other volunteer services to the elderly, paint, roof and repair homes for low-income residents, and serve in various capacities in church and community organizations.

Valley State sponsors and funds two annual scholarships at Saginaw Valley State University. The credit union also supports various sport and academic programs at the University and the staff raises its own funds for contribution to the SVSU Foundation.

Public service activities planned for the future

Establishment of "The LeVoy Daniel Scholarship Fund" to be contributed to our local community college, Delta College. Mr. Daniel faithfully and capably served Valley State for 38 years before his unexpected death in December 1999. This scholarship will be contributed in his memory.