Connectionsthe newsletter for Alliant Credit Union members

75TH ANNIVERSARY COMMEMORATIVE ISSUESEPTEMBER 2010

6

A new milestone for our 76th year: Alliant andContinental Federal Credit Union to mergeAlliant is in the process of merging with the Continental Federal Credit Union,headquartered in Tempe, AZ. The combined entity will go forward under the AlliantCredit Union banner once the merger receives regulatory approval and the integrationis complete. The merger is expected to be complete by January 2011.

Continental Federal Credit Union, founded in 1952, currently serves the employeesand retirees of Continental Airlines, US Airways, their family members and others whowork in the air transportation industry. Continental’s separately branded US AirwaysCredit Union will also be included as part of the merger. Through the merger Alliantwill gain approximately 24,000 members and assets of $170 million.

“This is a win-win situation for both Alliant and Continental Federal Credit Unionmembers,” says Alliant’s President & CEO Dave Mooney. The merger, he adds, makessense for a few key reasons:

• First, it is synergistic with our legacy sponsor United Airlines’ merger withContinental Airlines.

• Second, we will realize increased economies of scale which will reduce unit costs,strengthening Alliant’s cost advantage and further enhancing our financial valueproposition.

• And third, we will increase our presence and access for our members in Arizona,California, New Jersey and Texas as we gain service center locations in those states.

Lynn HughittChairperson

Scott PravenVice Chairperson

Laurene BentelSecretary

David W. MooneyPresident & Treasurer

Shirley JonesAmos KazzazMarc KrohnAlex Marren

Anne PeaseEd RogowskiSteve Spiegel

Alliant Board of Directors

looking ahead

Alliant rate board

EFFECTIVE OCTOBER 1, 2010

P.O. Box 66945 Chicago, IL 60666-0945www.alliantcreditunion.org

NEW228-R09/10

Your savings federally insured to at least $250,000and backed by the full faith and credit of the

United States Government

National Credit Union Administration,a U.S. Government Agency

IMPORTANT: Rates may have changed since this newsletterwas published. Visit www.alliantcreditunion.org or call800-328-1935 for current rates.

Dividends are subject to change monthly.

Loan approval, APR and downpayment required based on creditworthiness,collateral, payment method and ability to repay. Rates, terms and conditionssubject to change. Other requirements apply. See our web site or talk to aMember Services Representative for details.

This newsletter is for members’ personal use only. Reproducing and/or sellingthe contents of this newsletter without prior written permission from AlliantCredit Union is prohibited. Copyright Alliant. Articles are prepared as aneducational service for Alliant members. They should not be relied on as asubstitute for individual financial or legal research. Articles in this newsletterare not intended to be used (and may not be relied on) for penalty avoidance.

financial update

AUGUST 2010 2009Net Assets $6,924,793,320 $5,912,720,196

Total Loans $3,268,831,667 $3,307,810,479

Total Deposits $6,145,013,682 $5,355,552,912

Total Reserves $705,509,798 $652,064,153

Total PrimaryMembers 258,009 255,341

Alliant main offices and Service Centers willbe closed in observance of the followingholidays:Columbus Day– Monday, October 11Veteran’s Day– Thursday, November 11Thanksgiving Day– Thursday, November 25

convenient 24/7/365 account access• Online banking at

www.alliantcreditunion.org• Member Contact Center at 800-328-1935• Self Service Telephone at 800-482-5328• Over 80,000 surcharge-free ATMs

nationwide

Alliant Member Contact Center800-328-193524/7 personal serviceTDD/TTY 773-462-2300

Self Service Telephone (SST)800-482-532824/7 automated account access

VISA® Debit CardLost/Stolen: 800-328-1935

VISA® Credit CardsTo speak to an Alliant Representative800-328-1935, x2302Mon–Fri, 7am–5pm CTAfter Hours: 866-444-8529Lost/Stolen: 866-444-8529

VISA® Gift CardPurchase: 800-328-1935Support Center: 866-466-2362

Mortgage Hotline800-365-7003Mon–Fri, 6am–7pm CTSat, 8am–12pm CT

Auto/Home Insurance888-380-9287Mon–Fri, 6am–10pm CTSat, 6am– 8pm CT

BALANCETM Financial Fitness888-456-2227Mon–Th, 7am–10pm CTFri, 7am–7pm CTSat, 10am–7pm CT

MEMBERS™ Financial Services800-226-2994(Representative located inChicago, IL, Denver, CO andSan Mateo, CA)

Deposits/PaymentsP.O. Box 60050City of Industry, CA 91716-0050

Credit Card PaymentsP.O. Box 60051City of Industry, CA 91716

All Other Correspondenceincluding IRA and HSA depositsP.O. Box 66945Chicago, IL 60666-0945For more information visit:www.alliantcreditunion.org.

Alliant headquarters11545 W. Touhy Avenue, Chicago, IL 60666

office closings

Deposits(% as high as) Rate APY*

Savings 1.342 1.35High Rate Checking 1.342 1.35Regular Certificates† 2.618 2.65Jumbo Certificates† 2.716 2.75Health Savings (HSA) 2.325 2.35

Loan Rates(% as low as) Rate APR*

New Vehicle†† – 3.25Used Vehicle†† – 3.75Student Loan – 3.755/1 ARM 3.375 3.3407/1 ARM 3.875 3.589* APY=Annual Percentage Yield. APR=Annual Percentage Rate† Certificate rates as of September 23, 2010†† Vehicle rates effective October 1, 2010

DECLARED SEPTEMBER 23, 2010

The October 2010 Savings and IRAdividend, declared 09/23/10, provides aCompounded Annual Percentage Yield of

1.35%APY

Dividends are paid on the last day of themonth to accountholders who havemaintained an average daily balance of$100 or more. Savings dividend is subjectto change monthly.

October savings dividend

October checking dividend

DIVIDEND

DECLARED SEPTEMBER 23, 2010

The October 2010 High RateChecking dividend, declared09/23/10, provides a Compounded AnnualPercentage Yield of

1.35%APY

Checking dividends are paid on the lastday of each month to accountholderswho meet the requirements of theaccount. Checking dividend is subject tochange monthly.

AS OF SEPTEMBER 23, 2010

Our guide for the past 75 years, for today and forthe future: serving your interests

This October, our credit union will mark its 75th anniversary,an impressive milestone for any company. Only a handful offinancial institutions have been operating as long, and manyof those are unrecognizable amalgams of many predecessorentities.

The significance of this event isn’t about endurance orsurvival … it’s that for three-quarters of a century Alliant haseffectively served its members, providing consistently superiorfinancial value and helpful, knowledgeable and memorableservice. That’s both the importance of, and the explanation

for, our longevity. As a member-owned cooperative Alliant has only one purpose:to serve our members’ individual and collective interests. This principle hasguided generations of credit union board directors and employees – and it stillguides us.

While Alliant’s history is characterized by the constancy of our member-focusedmission and values, we have also successfully adapted to changing member needsand preferences, technologies, sponsor situations and competition. Organizationsthat don’t adapt are destined to become the Moa of the business world. (Moawere 12-foot-tall flightless birds once plentiful in New Zealand. Despite theirlarge size and sharp claws, they proved no match for spears, and man huntedthem to extinction.) Although our credit union is one of the largest in the nation,we’re not a Moa. Instead, over the years, we’ve evolved to become ever stronger,enabling us to take on the toughest of challenges and still provide members withthe Alliant Advantage.

For instance, over the years, we’ve increased the ways members can earn andsave by adding market leading products like Certificates and mortgages. We’veexpanded access and convenience through ATMs, online banking and personalassistance available 24/7 by phone. Plus, we’ve extended membership to thefamily of our members and to new sponsors.

At Alliant, as we celebrate our history, we are also focused on our present andfuture. Your credit union will continue to evolve and respond to changingconditions, always guided by a commitment to sustain the value that you and allour members expect and deserve from doing business with Alliant. Thank youfor being a member. We couldn’t have done it without you.

letter from the president

David W. MooneyPresident/CEO

Five fabulous things thathappened in 19351. Babe Ruth hits his

714th home run2. Benny Goodman gives birth

to a danceable jazz craze –the swing

3. The Social Security Acttakes effect

4. “Mutiny on the Bounty” winsthe Oscar for best movie

5. A small group of United Airlinesemployees gets together andorganizes our credit union as asafe place to save and to getloans at a fair rate

Grand opening of ourSan Francisco Service Center,June 7, 1959

In 1935, on October 26, weincorporate as the United Air LinesEmployees’ Credit Union withheadquarters in Hangar #3 atChicago’s Midway Airport.Membership is restricted to UnitedAirlines employees. By year-end, wehave 146 members, total deposits of$5,065.50, 38 loans totaling $4,210and a net income of $16.33

In 1937, the credit union (CU) setsaside one morning or one day a weekfor handling loans and withdrawals.

By year-end, we have 779 members.CU President of the Board R.E.Pfenning remarks, “I feel that a greatdeal has been accomplished inassisting (members) to straighten outtheir financial difficulties and instarting a great many others on theroad to saving who had never savedanything before”

In 1940, E.J. Langel, a Unitedemployee, who had managed the CU,becomes the first person “paid” forworking for the credit union. Theboard authorizes United to bill theCU for 50% of his salary. In 1941,due to the expansion of the CU, theboard also decides it’s necessary tohire someone to assist Mr. Langeland agrees to reimburse United$87.50 per month for the clericalservices rendered

In 1941, after exhausting everyresource in an endeavor to collect thebalances of delinquent loans, wemust charge off two loans in theamount of $4.87 and $1.71.Membership is now 1,809

In 1943, in the midst of WWII,outstanding loan balances frompeople in the military are notrequested and no dividends are paid

In 1949, membership is 5,451 (56%of all United employees). The boardestablishes the job of GeneralManager to serve as “custodian ofthe funds, securities, books ofaccount and other valuable papers,and administer the day-to-dayactivities of the credit union.” E.J.Langel is appointed to that job

In 1953, we approve 7,605 loans.Average loan amount: $590. Becauseof increased loan demand, we nowexpand loan appraisals to everyworkday

In 1954, the CU uses the slogan,“Save more in ‘54” and increasessavings account limits from $3,000to $3,500. Average savings accountbalance: $345. For the first time,certified public accountants audit us.We also increase our paid staff to 16and move headquarters to 6000Cicero Ave. in Chicago

In 1957, the credit union beginsreimbursing United for all services,supplies and salaries. During theformative years, United generouslysubsidized the CU, providingoperational services at no cost andpaying salaries of employees

In 1958, we open offices in Denverand Los Angeles (we already operateoffices in Chicago, New York andSan Francisco)

In 1959, we have 17,710 members(83% of all United employees)

In 1961, United and Capital AirLines merge. During the first fewmonths after the merger, almost2,000 former Capital employees jointhe CU. Headquarters is moved toMount Prospect, IL

In 1962, we have 36 employees andopen branch offices in Detroit andPittsburgh

In 1964, at our headquarters, we’renow able to process by 5pm all workreceived by 3pm. 50% of all Unitedemployees now have a loan with thecredit union. Average savings accountbalance: $796

In 1966, considering the welfare ofour members, the CU declares amoratorium on all loan and interestpayments during a United employeestrike. The credit union forfeits $3million in payments during the two-month strike

In 1968, the CU converts frommanual bookkeeping to IBM®

computer data processing andaccounting

In 1972, the CU reaches $100million in total assets and GeneArtemenko becomes General Manager

In 1973, the CU inaugurates “onestop service” at all 22 branches,enabling members to obtain awithdrawal check in as little time asone minute and loans in as little timeas five minutes

In 1974, the CU eliminates its 25cent fee to join. Retired Unitedemployees become eligible formembership and can start enjoyingthe same benefits as employeesexcept for lower loan limits.Members can now make savingswithdrawals by phone. Savingsaccount maximum increased from$12,500 to $15,000

In 1975, the CU begins a loancontinuous policy. (Previouslymembership benefits terminated onthe effective furlough or terminationdate of a United employee and anyloan balance was due immediately.With this policy, normal monthlyrepayments of an existing loan arepermitted)

In 1977, the CU distributes its firstnewsletter to members

In 1978, the CU introduces anonline accounting system, whichautomatically provides accountbalances after each transaction andenables each office to instantlyservice withdrawals. The CU analyzesthe feasibility of offering mortgages,checking accounts and travelers’checks but decides these services don’tjustify start-up costs and potentialdecrease of dividend payouts

In 1981, the CU offers All-SaversCertificates from October 1, 1981, toDecember 31, 1982. The initialdividend rate: 12.61%

In 1982, the CU introduces IRAs,and in response to high memberdemand, permits spouses of membersto establish separate IRAs. By year-end, 9,063 IRAs are opened

In 1984, headquarters moved tofifth floor of the Service CenterHangar at O’Hare InternationalAirport. CU begins “Instant LoanService,” enabling members to receiveimmediate approval or denial of a loanrequest made in person or by phone

In 1986, United buys The HertzCorporation and CU membership isoffered to its 12,000 employees. (In1987, United divests itself of Hertz.Since CU bylaws restrict membershipto employees of United and itsaffiliates, 3,734 Hertz employeeshave their CU membershipstransferred to First CommunityCredit Union in St. Louis, MO)

In 1987, the CU explores thefeasibility of offering mortgages with atest program in Illinois, usingconservative lending policies, no points,no application fees and no misleadingintroductory rates. Loan rates adjustto changes in the Prime Rate

In 1989, the CU has more than3,000 mortgages and movesheadquarters to 125 E. AlgonquinRoad in Arlington Heights, IL

In 1991, the CU introduces a toll-free phone number and creates theTelephone Service Center to consolidateall phone transactions into acentralized location

In 1992, Robert Bream becomesCEO. The CU introduces VISA®

credit cards (in the first four months,13,000 members sign up and charge$12 million in balances). Membershipnow extended to spouses. “Once amember, always a member” policyintroduced (to accommodate Unitedemployees who later find themselvesworking for other companies –previously, they would have had toforfeit membership)

In 1994, our mortgages are nowavailable in all 50 states. The CU nowallows the member’s entire family to join

In 1995, the CU introduces our firstchecking account (Passport Plus) andATM check card. By year-end,17,000 accounts are opened and over465,000 ATM transactions made

In 1998, our annual report states,only 9% of every dollar earned isused to support our daily operations(compared to 33% for our peers).Plus, we return 72% of every dollarin revenue back to members individends (compared to 48% for ourpeers). The other 19% goes into ourcapital reserves to increase ouralready impressive financial stability.The CU introduces an intranet site onUnited’s SkyNet

In 1999, the CU launches its firstInternet site. Construction for theCU’s new headquarters at 11545W. Touhy Ave. in Chicago, next toO’Hare International Airport, iscompleted on time and under budget

In 2000, the CU launches“SkyBranch,” our first online bankingservice. 55,000 members use ourcredit card

In 2001, the CU partners withBALANCE™ Financial Fitness tooffer members free, expert financialcounseling

In 2002, the CU introduces Bill Payto enable members to pay their billsonline. We also offer MEMBER’SCHOICE™ Protection debtcancellation coverage

In 2003, we change our name andbrand identity to Alliant. After 68years as a single-sponsor CU, thechange signals a major shift –membership diversification. By year-end, we offer our services to 27sponsor organizations and toindividuals who live or work in 19communities around O’HareInternational Airport. David Mooneybecomes President and CEO

In 2005, the CU introduces ourMember Assistance Program toprovide loan payment relief tomembers impacted by reduction inpay, layoffs and natural disasters

In 2006, to provide additional highrate savings options, the CUintroduces Certificates. We also beginoffering student loans

In 2007, the CU introduces ourHealth Savings Account (HSA),eDeposits (allowing members to

deposit checks online) and 24/7phone access to Alliant MemberService Representatives

In 2008, we expand our network ofsurcharge-free ATMs to more than80,000 and we acquire KaipermFederal Credit Union

In 2009, the CU introduces FreeHigh Rate Checking, which adds $30million in checking deposits – a 30%increase from 2008. We launch thenot-for-profit, charitable-givingAlliant Credit Union Foundation tohelp people achieve economicempowerment and self-sufficency. Wealso re-introduce investment services,to offer members access to no-cost,no-obligation consultations

In 2010 Alliant becomes a sponsor ofthe Orphan Foundation of America, anorganization that helps teens who “ageout” of foster care become self-reliant,achieve educational goals andsuccessfully enter the work force.Electronic signature pads introduced atService Centers to make deposits,withdrawals and transfers. This year,we will also debut on social media sites,such as Facebook and Twitter. And, weannounced a merger with ContinentalFederal Credit Union, includingits separately branded US AirwaysCredit Union

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Celebrating our 20th anniversary, 1955

Going live with one of our first ATMs, circa 1995

The Telephone Service Center (now the MemberContact Center) goes live in 1991

Breaking ground for the new headquarters at11545 W. Touhy Ave., Chicago

In the beginning, only United employees couldjoin our credit union

General Manager E. J. Langel (right) presentsa member with a family budget guide, 1958

E M P LO Y E E S ' C R E D I T U N I O N

TM