Banner. Together we can do THIs. WITHOUT THE FUNDS YOU NEED.

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Together we can do THIs.

Apply online at AFCU.org!

WITHOUT THE FUNDS YOU NEED.

When scholarships, federal loans

and financial aid don't cover your

expenses, the Student Choice loan

can make up the rest.

No origination fee

Flexible repayment options

Apply once and secure a line-of-credit

Option to defer principle and interest payments

while in school

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_{A r k A n s A s F e d e r A l C r e d i t U n i o n}

s e C o n d Q U A r t e r

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lArry’s letter

Keeping You Informed

The first quarter of 2014 certainly flew by. Unfortunately the weather was

not conducive to stellar member service. People were unable to get into work with

the snow and ice, leaving many service centers working with less than full staff. We

apologize for the delays and appreciate your understanding.

The first quarter saw us finish our remodel of the Conway Service Center.

The remodel includes new office space, which will allow us an even better

oppor-tunity to serve you, our members. Speaking of better opportunities to serve you,

the second quarter will see our Rogers Mortgage Office turn into a full Service

Center and it will see the location change of our Hot Springs Service Center. We are

excited to be able to better serve both the Northwest Arkansas and Hot Springs

areas.

The second quarter will also see improvements in the checking

experience with upgrades on checking accounts that will focus more on providing

rewards for members for their use of the accounts. As always, with every

Arkansas Federal Checking Account, you invest in yourself every time you swipe

your debit rewards card because you’re earning points or cash back! It’s our

mis-sion to improve our members’ financial lives, and our upgraded checking accounts

are just another way we’re keeping that commitment to you.

Your credit union is also committed to exploring new technology in our

effort to make it even easier for you to do business with us. We are currently in

the testing phases of an upgraded mobile app. Mobile banking presents many

exciting opportunities and your credit union is excited to help you improve your

financial life by extending these opportunities to you.

The management team and your board of directors are thankful for your

continued and increasing use of our cooperative. AFCU is financially sound and

stands ready to assist you in the same way that we have assisted members for over

57 years! You, the members, are the reason we exist. As we look to the future, you

can be assured we will consistently strive to exceed your expectations, continue to

deliver innovative products and services, and most importantly, we will always try

to improve your financial lives in everything we do.

May God continue to bless you and yours.

BoArd oF direCtors

Phillip B. Boudreaux, Chairman

Jerry E. Spratt, Vice Chairman, CPA, CFE, CGFM, CFSA Garold L. White, Treasurer

Art Williams, Secretary William Shrigley, Director

Arkansas Federal Credit Union

P.O. Box 9, Jacksonville, AR 72078-0009

AFCU.

org

sUpervisory

Committee

Robert Rodgers, Chairman, CPA Jay Simmons, Secretary Don Greene, Member Thomas Russell, Member Vondra Armstrong, Member

HolidAy Closings

Arkansas Federal will be closed in observance of the following holidays:

• Memorial Day,

Monday, May 26, 2014

Arkansas Federal wishes you and your family a safe and happy holiday.

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Identity Theft Protection

ID Pro Select is an identity theft prevention and recovery solution with three packages tailored to fit all budgets. The link can be found on the AFCU website under the member services tab - security center. Remember, it’s available to anybody, so go out and take a look at this product and encourage your friends and family to do the same. This product can bring peace of mind knowing you are protected against identity theft. Protect yourself today!

Shred Day

Shred your documents and help keep your family’s identity safe! Arkansas Federal Credit Union is partnering with Cintas to host Shred Day on Friday, April 25th, from 10 a.m. – 2 p.m. at the Jacksonville Service Center located at 2424 Marshall Road. Protect your identity, along with your family and friends, by bringing bags and boxes filled with your unwanted documents. We’ll immediately shred your documents onsite for FREE. You DO NOT have to remove staples, paper clips, binder clips or manila folders. We CANNOT shred binders, cardboard, plastics, hard drives, computer discs or floppies.

2013 Annual Report Now Available

Visit AFCU.org to view the 2013 Annual Report under the “AFCU Publications” tab. You can also call 501-982-1000 or 800-456-3000, or stop by any Arkansas Federal Service Center to request a copy.

Central Arkansas

501-982-1000 Toll-Free 800-456-3000 Fax 501-982-FAXX Email info@afcu.org Federally insured by NCUA

ARKANSAS FEDERAL CREDIT UNION

NAVIGATING

2013

ANNUAL REPORT

Federally insured by NCUA

Foreign ATM Deposits

Beginning April 7, 2014 Arkansas Federal Credit Union will no longer offer the ability to make foreign ATM deposits. This means members will be unable to make a deposit to an AFCU account from any ATM not owned by AFCU.

We offer several free alternatives to make deposits that include: Shared Branching, AFCUDeposit Mobile app, the ability to make deposits from AFCU owned ATM’s, visiting any one of our service centers, and mailing your deposit.

Arkansas Federal Credit Union strives to provide the kind of exceptional service that makes it easy for you to do business with us. We apologize for any inconvenience this change may cause. If there are any questions about this change or if we may be of further assistance, please contact the Member Service Center locally at 501-982-1000 or toll-free at 800-456-3000.

Scholarship Application

Arkansas Federal’s scholarship application is now available. The scholarship is for $5,000 and high school seniors who are AFCU members or children of AFCU members are eligible to apply. The applications can be picked up at any one of our service centers or found online at AFCU.org. The deadline to apply is Thursday, May 15, 2014.

Debt Protection

AFCU offers debt protection agreements for consumer and credit card loans through the CUNA Mutual Group. There have been policy changes to this product that offers enhanced benefits and adds layers of protection for members. There have also been changes that simplify the contracts for these products. If you’re interested in finding out more about these debt products contact the Member Service Center locally at 501-982-1000 or toll-free at 800-456-3000.

Members Elected to Board of Directors

Arkansas Federal Credit Union’s 58th Annual Membership Meeting was held on Thursday, March 27, 2014. One member was elected by acclamation to serve a three-year term on the credit union’s Board of Directors. That member is Art Williams.

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WHAT WE DO

How does Arkansas Federal Credit Union protect my personal information?

To protect Your personal information from unauthorized access and use, We use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

How does Arkansas Federal Credit Union collect my personal information?

We collect Your personal information, for example, when You • open an account or deposit money

• pay Your bills or apply for a loan • use Your credit or debit card

We also collect Your personal information from others, such as credit bureaus, affiliates, or others.

Why can’t I limit all sharing?

Federal law gives You the right to limit only

• sharing for affiliates’ everyday business purposes – information about Your creditworthiness

• affiliates from using Your information to market You

• sharing for non-affiliates to market You

State laws and individual companies may give You additional rights to limit sharing.

DEFINITIONS

Affiliates

Companies related by common ownership or control. They can be financial and non-financial companies. Our affiliates include companies such as: BAFS, PSCU & CO-OP/CUSC.

Non-Affiliates

Companies not related by common ownership or control. They can be financial and non-financial companies. Arkansas Federal Credit Union does not share with non-affiliates so they can market You.

Joint Marketing

A formal agreement between non-affiliated financial companies that together market financial products or services to You. Our joint marketing partners include categories of companies, such as:

• financial service providers • insurance companies

YOUR PRIVACY NOTICE

This is your privacy policy disclosure and instructions. It contains important information concerning our privacy policy and includes necessary disclosures as required by the Gramm-Leach-Bliley act (15 U.S.C., CH. 94, §6801 ET SEQ.) and the national credit union administration rules and regulations (12 CFR 716). Please be certain to read these disclosures and instructions carefully and notify us at once if any parts are unclear.

FACTS:

What Does Arkansas Federal Credit Union Do with Your Personal Information?

Why?

How?

Financial companies choose how they share Your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires Us to tell You how We collect, share, and protect Your per-sonal information. Please read this notice care-fully to understand what We do.

All financial companies need to share custom-ers’ personal information to run their every-day business. In the section below, We list the reasons financial companies can share their customers’ personal information, the reasons Arkansas Federal Credit Union chooses to share; and whether You can limit this sharing.

What?

The types of personal information We collect and share depend on the product or service You have with Us. This information can include: • Social Security number and income • account balances and payment history • credit history and credit scores

When You are no longer Our member, We con-tinue to share Your information as described in this notice.

Reasons We can share Your personal information Does the Credit

_{Union share?}

Can You limit

_{this sharing?}

For Our everyday business purposes - such as to

process Your transactions, maintain Your account(s), respond to court orders and legal investigations, or report to credit bureaus

YES NO

For Our marketing purposes - to offer Our products

and services to You YES NO

For joint marketing with other financial companies YES NO For Our affiliates everyday business purposes -

information about Your transactions and experiences YES NO

For Our affiliates everyday business purposes -

information about Your creditworthiness NO

WE DON’T SHARE For Our affiliates to market to You NO WE DON’T _SHARE For non-affiliates to market to You NO WE DON’T _SHARE Questions?

Call 501-982-1000 or 800-456-3000, or write to us at: P.O. Box 9, Jacksonville, AR 72078

Why?

What?

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PLUS Loan Refinance

Arkansas Federal Credit Union

P.O. Box 9, Jacksonville, AR 72078-0009

AFCU.

org

• 0.25% rate reduction by enrolling in automatic electronic payment

• Graduated repayment option that results in lower monthly payments during the first two years of your repayment term

• NO pre-payment fee - pay off your loan at any time without penalty

Coverage Options Available: • Homeowners Insurance • Auto Insurance • Renters Insurance

• Motorcycle, Boat and RV Insurance • Umbrella Liability Insurance

Is your Federal PLUS loan “overrated”? Refinance with your

credit union and SAVE!

If you’re a parent or grad school alum who borrowed a federal PLUS loan within the last several years, odds are good that you’re locked into an interest rate of 7.9% or even 8.5%. Interest rates keep changing however, and because of today’s historically low-rate environment, we can help you save!

With our PLUS Loan Refinance, you have the chance to refinance your existing PLUS loans at lower fixed rates, consolidate multiple loans into one convenient payment, and potentially save thousands over the life of your loan.

On top of our already low rates you can also take advantage of these unique borrower benefits:

Keep Your Account Active

Accounts that have less than $500 on deposit and have had no activity in the last 12 months are considered inactive. To cover administrative upkeep, a $25-per-quarter fee is charged on inactive accounts.

You can avoid this fee by simply keeping you account active. Visit an AFCU Service Center, or call 501-982-1000 or

800-456-3000 if you have any concerns.

Make the smart choice—consider a PLUS Loan Refinance and start paying off your PLUS loans on your terms!

Find out more about this offer at AFCU.org

.

Auto and Home Insurance

The Right Choice at the Right Price

Arkansas Federal Credit Union is proud to offer our members auto and homeowners insurance. Now you can stop looking because AFCU has the coverage you want for all of your insurance needs.

AFCU is committed to helping our members plan for all of life’s events. We are able to offer a complete line of insurance solutions from top-rated carriers to help you protect your assets. We help identify coverage choices that allow you to customize your protection while focusing on a premium payment plan that fits your budget and saves you money.

Here are just a few ways we can help with your insurance needs:

Don’t miss out! Choose Arkansas Federal for all of your insurance needs. Call 866-454-6451 or visit us online today for additional details at AFCU.org.

Insurance Products and Services are offered through Southwest Business Corporation (SWBC). Arkansas Federal Credit Union is not an affiliate of SWBC. NOT NCUA INSURED. No Credit Union Guarantee.

• Affordable Prices –We shop your insurance with more than 10 different national and regional carriers to be sure we offer you the best rate and the most comprehensive coverage. You can compare the options and customize your protection to meet your specific needs and your budget.

• Outstanding Service-You’ll receive the service you’ve come to expect from your credit union. We partner with carriers who provide excellent service every time – all the time.

• Easy Payment Options -Our payment options are designed to fit your lifestyle. Payments can be withdrawn automatically from your credit union account, pay it monthly by check or even by credit card – you choose what’s right for you.

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Is the time right for you to return to conservative investing Market volatility? Low interest rates. Retirement risks. All of these “headwinds” are making it tougher than ever to know where to invest your retirement savings. Given today’s turbulent economy, many consumers are considering a return to a more conservative approach. Is the time right for you to return to conservative investing?

Call for an appointment to meet with Mike Van Bokhoven, Financial Advisor, Arkansas Federal Financial Services located Arkansas Federal Credit Union to find out more about the challenges of today’s economy and how conservative investments like share certificates (CDs) and annuities can help get your financial plan back on track. You’ll learn the answers to your investment questions, including:

For a no-cost, no-obligation appointment call Nancy at 501-533-21 01.

All guarantees are based on the claims-paying ability of the issuer. Representative is not a tax advisor. For information regarding your specific tax situation, please consult a tax professional.

Representatives are registered, securities are sold and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000

Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit

investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make

securities available to members.

There are distinct differences between fixed annuities and share certificates (CDs). Most share certificates are considered short-term investments, while annuities are considered long-term investments. Share certificates are insured by the federal government, either through FDIC or NCUA. The investment in a fixed annuity is guaranteed by an insurance company. Like share certificates, annuities have a penalty for early surrender, and withdrawals taken before age 59½ from an annuity may also be subject to a 10% federal tax penalty. Insurance products are issued by CUNA Mutual Insurance Society.B2MM-0710-9002

Central Arkansas

501-982-1000 Toll-Free 800-456-3000 Fax 501-982-FAXX Email info@afcu.org

The Banner is the official quarterly publication of Arkansas Federal Credit Union. Comments and suggestions should be addressed to:

Marketing Department Arkansas Federal Credit Union P.O. Box 9, Jacksonville, AR 72078-0009

The Arkansas Federal Credit Union Banner Newsletter does not represent legal, accounting, or other professional advice. Although we try to ensure the information contained is accurate, no party assumes liability for loss or damage due to dependence on this material.

We also have over 5,000 offices at Credit Union Service Center locations in all 50 states and eight foreign countries to serve you. To find a location near you, go to

www.cuservicecenters.com.

NMLS 418494

A Message from Arkansas Federal Financial Services

Mike Van Bokhoven

How can conservative investments help address today’s economic risks? What are the differences between CDs and annuities?

What are the different types and advantages of annuities?

How do I decide which conservative investment is right for me?

Member Education Seminars

Arkansas Federal’s educational seminars and workshops offer valuable lessons and resources to help improve your financial life. To learn more or to register for a seminar, call Arkansas Federal Financial Services at 501-533-2101 (central Arkansas) or 800-456-3000, ext. 2101 (toll-free).