A Partnership with First Class and CU1

All current First Class employees will have positions after the merger. Members can expect the same familiar team members and continued commitment to personalized service. As part of a larger organization, our staff will also benefit from expanded resources and growth opportunities, helping us better serve our membership for years to come.

Our postal heritage that founded the credit union will continue to be honored. CU1 has successfully merged with other postal employee credit unions in the past and understands the importance of preserving those values and traditions. Our founding story and long-time postal identity will remain part of who we are.

Continuing to listen to and represent our members remains a top priority. As part of the merger, current board members will have the option to serve on an advisory committee to communicate needs, ideas, and priorities of our members and communities to the combined organization. This structure will help ensure that insight and member feedback from current First Class members continue to play an important role moving forward.

No. This merger is the result of a strategic decision focused on the long-term future of our credit union and the members we serve. Our organization remains financially sound, and this partnership is intended to strengthen our ability to provide enhanced products, services, technology, and resources in an increasingly competitive financial environment. The financial services industry is rapidly evolving, and we believe this merger will better position our members and communities for continued success in the years ahead.

The Board of Directors has a responsibility to make decisions that protect the long-term strength and sustainability of First Class Community Credit Union while continuing to provide exceptional value and service to our members.

After extensive evaluation and many discussions, the Board believes partnering with Credit Union 1 provides the best opportunity to preserve what makes First Class Community Credit Union special while providing our members and employees with greater resources, products, technology, and opportunities.

This decision was not made lightly. The Board carefully considered member feedback, including concerns about preserving our identity, history, and heritage. After further analysis and discussion, we believe this partnership positions our credit union for long-term success.

The Board postponed the original member meeting to allow the Board additional time to continue its evaluation of the proposed merger. One message we heard consistently from members was the importance of preserving the identity, history, and heritage of First Class Community Credit Union. The Board shares that commitment and took additional time to thoughtfully evaluate how those values could be preserved as part of the proposed partnership with Credit Union 1.

Preserving our history and heritage has been one of the most important considerations throughout this process.

First Class Community Credit Union has a proud legacy, including our longstanding roots serving postal employees and their families. The Board has had extensive discussions with Credit Union 1 about preserving and honoring that history.

CU1 has committed to supporting our legacy through opportunities such as:

• Maintaining displays and recognition of our history.
• Preserving important elements of our postal employee roots.
• Incorporating legacy signage, murals, and other historical reminders.
• Establishing an annual $30,000 scholarship program for postal employee families to support continuing education after high school.

The goal of this partnership is not to erase our history, but to ensure that our history continues.

Yes. Both First Class Community Credit Union branch locations will remain open for years to come. Members will continue to visit the same locations and receive the same personal service they have come to expect.

Yes. Members will continue to have access to local service. Phone calls will continue to be routed to our local branches first, allowing members to speak with employees familiar with our members and community.

The financial services industry is changing rapidly. Credit unions of all sizes are facing increased competition, rising technology expectations, cybersecurity demands, regulatory requirements, and increasing costs. Members expect more digital services, faster transactions, more financial products, competitive rates, and convenient access wherever they are. Providing these services requires significant investment in technology, staffing, security, and infrastructure.

While First Class Community Credit Union has successfully served members for 100 years, the Board must look ahead and recognize the challenges facing smaller financial institutions, including:

• Increasing competition from banks, large credit unions, fintech companies, and payment providers.
• Greater difficulty investing in technology and digital services at the same level as larger organizations.
• Changing member demographics.
• The need for greater financial flexibility and resources to remain competitive.

By combining with Credit Union 1, we gain access to significantly greater resources and scale while maintaining the personal service that members value.

The goal is to improve the member experience. Members will continue receiving the personal service they value while gaining access to expanded products, services, and technology. The combined organization will provide additional resources that allow employees to focus even more on helping members with their financial needs.

Yes. One advantage of joining a larger organization is the increased ability to provide career development opportunities for employees.

A larger organization creates more opportunities for advancement, specialized roles, training, and long-term career growth. This helps retain experienced employees and supports the strong member relationships our members value.

Community involvement is a core value shared by both organizations. Credit Union 1 is highly active in the communities it serves and contributes more than $1 million in annual and in-kind support to charitable causes and community initiatives. Through the CU1 Cares Foundation, CU1 provides financial support, supplies, community assistance, and financial literacy workshops. This partnership creates an opportunity to expand our ability to support local organizations, families, and community initiatives while continuing our commitment to giving back.

The Board carefully considered this option. Remaining independent would allow us to continue operating as we do today, but the challenges facing smaller financial institutions are expected to continue increasing. The resources needed to compete effectively, invest in technology, provide competitive products, maintain strong deposit offerings, and meet increasing member expectations continue to grow.

The Board believes combining with CU1 allows us to protect our legacy while providing the resources necessary to serve members better in the future.

No. The personal relationships built over generations are one of our greatest strengths. Those relationships are the result of our employees, our community connection, and our commitment to members. The merger is intended to enhance those relationships by providing employees with more resources and members with more options. Members will continue seeing familiar faces, visiting familiar locations, and receiving the personal service that has defined First Class Community Credit Union.

The Board evaluated potential options carefully and believes Credit Union 1 is the right partner because they share many of our values:

• Commitment to members.
• Strong community involvement.
• Investment in employees.
• A culture focused on service.
• A commitment to preserving the history and identity of the credit unions they serve.

Credit Union 1 also has a long history of serving federal employees and has strengthened its own organization through previous partnerships with credit unions that shared similar postal employee roots. Because of that shared appreciation for our heritage, CU1 has committed to honoring the legacy of First Class Community Credit Union through legacy displays, historical signage, murals, and other permanent recognition of our history and postal employee origins. These commitments reflect a shared belief that preserving our legacy is not about looking backward, it is about ensuring the story of First Class Community Credit Union continues for future generations.

Members will have the opportunity to learn more about the proposed merger, ask questions, and vote on the proposal. The Board encourages all members to review the information provided and participate in this important decision regarding the future of First Class Community Credit Union.