Credit Unions and Banks The Basic Difference Credit Unions History of Credit Unions Structure Purpose and Philosophy The ECU Difference

The Difference Credit Unions are not-for-profit financial institutions Owned and controlled by members Banks are for-profit Owned and controlled by a group of share holders

How the System Works Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.

How the System Works, cont. Credit Unions use this difference to return extra benefits to their members and the communities they serve. Financial institutions are critical to our economy. They put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college...

Why are Credit Unions Not-For-Profit? Let’s take a look at how they began.

History CUs have existed for more than 150 years Congress passed the FCUA in 1934, which established CUs for the provident purpose of thrift Intent of CUs in the US was to expand financial service offerings to consumers during the Great Depression Credit unions were founded during difficult economic times throughout history They fared well during the “Great Recession” a few years ago when big banks failed As a result, Credit Union memberships has risen dramatically Spin-off of the barter economy in Germany and England CUs date back to 1908 in U.S.

Credit Union Structure Not-for-profit financial cooperatives that bring together borrowers and savers Have volunteer board of directors (not compensated), elected by members Every member has one vote in election of directors

What We Do Lower the cost of financial services to members and their families Better Rates Drives down cost of loans and deposits to all consumers Fewer Fees Offers lower fees and market leading rates which forces competitors to do likewise Bid down the cost of financial services to all consumers

“Not for profit, not for charity, Philosophy “Not for profit, not for charity, but for service” People Helping People

Membership Eligibility

ECU Snapshot Serving more than 170,000 members $3.2B assets Largest CU in Tennessee One of the 50 largest CUs in the nation More than 600 employees 24 branches and 70+ ATMs located Allpoint® ATM network adds 55,000 surcharge-free ATMs nationwide Financial Education Offer free financial advisors to all members Seminars

Community Partner ECU is beside our communities Contributions generally are awarded to organizations that provide broad community benefit. Since 2000, we’ve given $5.4M in contributions. Education Charitable Economic development

A Two Minute Recap