Operational Updates and Resources

Fee Schedule – Effective 8.1.23

The Board of Directors voted to approve the following changes, effective August 1, 2023:

• Removed the  Business Account Returned Deposit Item Fee
• Removed the  Returned Deposit Item Fee
• Changed the Courtesy Pay Fee from Per Presentment to Up to 4 Per Day
• Changed the Non-Sufficient Funds (NSF) Items from Per Presentment to Up to 4 Per Day
• Clarified that Expedited Payment is for Bill Pay
• Discontinued  the use of Share Checks

Dear valued PenAir Member,

Since 1936 PenAir Credit Union has been a catalyst where community, resources, and impact come together
to produce a powerful force for good. Grown from the values we hold most dear, three guiding principles
shape how we see the people we serve, the community around us, and our role within it. Respect. Service.
Communerosity^®. Our purpose is to enhance lives of the communities we serve from Mobile County, Alabama
to Leon County, Florida.

Strength Through Diverse Communities and Membership

PenAir serves a diverse membership across the Florida panhandle and southern Alabama and is not
dependent on any one market sector or industry. Recent news of two large bank failures with specific
challenges has dominated the headlines. Those financial institutions were heavily concentrated in the tech
sector, start-ups, and cryptocurrency industry. Additionally, uninsured commercial deposits comprised over
90% of those financial institutions’ balance sheets. The heavy reliance on a distinct sector and high
concentration of uninsured deposits ultimately resulted in those banks’ challenges and instability. PenAir’s
purpose is to enhance lives, and by our very nature, we strive to serve diverse communities and protect their
financial well-being. We prioritize our members by taking a conservative approach that avoids focusing solely
on start-ups, the tech sector, or any one industry.

We’re Extremely Focused on Enhancing Lives

Supporting your financial needs and enhancing your life are at the core of who we are. We are not-for-profit,
and our goal is to return as much value as possible to our members through our market-leading rates, a full
suite of financial services, financial literacy, and community service. In the last year, we worked to improve
access with the announcement of our new location in Beulah, removed barriers by expanding membership
across 17 counties in Alabama and Florida, provided members value with industry-leading certificate and
Money Market rates, and saved you money with the addition of over 70,000 surcharge-free ATMs nationwide.
We are more than a financial institution rooted in financial strength and supported our communities with over
5,000 volunteer hours in the last year alone.

We’re Committed

You have our commitment that PenAir will continue to remain a powerful force for good, maintaining strong
financial strength and stability as your community partner. On behalf of our board of directors, leadership, and
staff, we thank you for your continued trust and support.

Respectfully ~ Delbert L. Morgan, CEO/President, PenAir Credit Union

Effective March 21, 2023, PenAir® Credit Union will provide enrolled members a new, static
limit of up to $750 and capping our “Non-Sufficient Fees” and “Courtesy Pay” fees to four per
day, per account. Business accounts will also receive the static limit, with no fee cap.

Courtesy Pay is a discretionary service, separate from the overdraft protection that comes with
your account, covering overdrafts for checking accounts and withdrawals. The new limit will not
fluctuate and is in accordance with industry standards.

We offer a variety of options that might better meet your financial needs. To learn more about
these options, please visit your nearest branch or contact our Member Service Center at
850.505.3200, should a higher limit be requested. PenAir also offers Certified Financial
Counseling, free of charge, providing personalized, confidential, one-on-one coaching
surrounding your financial situation.

If you have any questions, we are here to assist you. Simply schedule an appointment online, stop by your nearest branch or call our Member Service Center at 850-505-3200.

What you need to know:

1) The Charter Change has been approved, what are our next steps?
Over the next several months, you will start to see us making administrative changes to remove the word “federal” from our branding. This includes items like documents, stationery, communication pieces, statements, advertising, signage, and more. All changes will be in place no later than 3/31/23.

2) Does this charter change affect our federally insured deposits?
No. It is important to note, that we will continue to be fully federally insured by the National Credit Union Share Insurance Fund (NCUSIF) which is managed by the NCUA and backed by the full faith and credit of the U.S. government.

3) How will membership eligibility change?
Making this change allows us to remove barriers to membership, creating more ease and less friction to bank with PenAir! This means that anyone who lives, works, worships, or goes to school in the approved service area will be eligible to open an account.

Previously, for an individual to become a member, the person would need to qualify through one of our Select Employer Groups (SEG).

The expanded membership area now includes the following counties:

Alabama:

• Baldwin, Alabama
• Mobile, Alabama

Florida:

• Bay, Florida
• Calhoun, Florida
• Escambia, Florida
• Franklin, Florida
• Gadsden, Florida
• Gulf, Florida
• Holmes, Florida
• Jackson, Florida
• Leon, Florida
• Liberty, Florida
• Okaloosa, Florida
• Santa Rosa, Florida
• Wakulla, Florida
• Walton, Florida
• Washington, Florida

Otherwise individuals can open an account under our Friends of the Navy Marine Corps. Relief Society select employer group (SEG).

4) Why is PenAir making this change?

The move to a state charter is an investment in the future strength of our credit union. It is one that we expect will pay off in many ways – especially in the growth of our membership, and other financial performance metrics that allow us to keep loan rates low, pay higher rates on deposits, and expand the convenience and access of our services for all PenAir members.

5) How will members benefit?

Members will benefit in a number of ways. By making this change we’re able to pursue more growth opportunities across 17 counties ranging from Mobile County, AL to Leon & Wakulla Counties in Florida. This evolution allows us to maintain a strong financial position into the future, enabling us to better serve our members and diverse communities in a sustainable way. Growth for the credit union also means more resources available to improve our member’s experience.

Effective October 1, 2022, PenAir Federal Credit Union Became PenAir Credit Union.

Our Board of Directors approved a recommendation for PenAir FCU to convert from a federal, to a state-chartered credit union. Our not-for-profit institution by-laws require a member vote to approve a change to our charter. This vote to convert from our current federal charter to a state charter took place on Wednesday, September 28, 2022 and will go into effect October 1, 2022.

So, what does this charter change mean for your relationship? Your interaction, accounts and member experience will not be impacted in any way. By converting to a state charter, we can expand our field of membership and pursue growth opportunities outside our current three county area. Growth for the credit union allows us to maintain a strong financial position into the future, enabling us to better serve our members and diverse communities in a sustainable way.

The charter change is truly in accordance with our Purpose “To Enhance Lives’, and with our Core Values that guide us every day: