Cincinnati Ohio Police Federal Credit Union Books NCUA Assessment in 2008

May 1, 2009

The Cincinnati Ohio Police Federal Credit Union has pledged to our members to operate with integrity and transparency. In our commitment to keeping members informed about the credit union I'd like to review with you a payment we made to ensure the National Credit Union insurance fund (or NCUSIF, the Federal Credit Union Deposit Insurance Fund) continues to be strong and stable.

The National Credit Union Administration (NCUA), the government regulatory agency for all federally- insured credit unions, recently announced an assessment to all federally insured credit unions. The purpose of this assessment was to ensure the strength of the federal credit union share insurance fund. Our share of this assessment was $540,428.00, which was recognized in our December 2008 financial statements.

I want to reassure all our members that this transaction does not affect individual members or employees and will have no impact on our current operations here at COPFCU. The Cincinnati Ohio Police FCU is very well capitalized. The NCUA requires a credit union's capital ratio to be a least 7%. COPFCU's capital is currently above 12% (with the assessment). What this means to our members is that the credit union is well cushioned financially. We are more than able to fund our member's loan demands, take our member's deposits and deliver the outstanding service that you have come to expect from us.

The Cincinnati Ohio Police FCU's financial statements have remained very strong. We have continued to thrive and grow, even in these tough economic times. We are part of a national credit union industry and share with every credit union the responsibility for ensuring the safety and soundness of all member deposits in all credit unions. This NCUA assessment is being shared by all federally-insured credit unions to strengthen your federal deposit insurance fund given the current economic downturn in our nation.

Cincinnati Ohio Police FCU's member deposits are federally insured to at least $250,000 by the National Credit Union Administration. This amount was recently raised from $100,000. It is the same coverage that is offered through federally insured banks (FDIC).

I know that our members are concerned about the recent headlines regarding financial institutions and their stability. Let me assure you that the Cincinnati Ohio Police FCU's financial performance continues to be strong. The more you know; the more confidence you will have in your financial institution. We will continue to implement a full array of financial products to fulfill your needs and to better serve you!

I encourage you to contact me by e-mail at twocher@copfcu.com if you have any questions or concerns about this assessment. The Cincinnati Ohio Police FCU is very fortunate to have such loyal members. Thank you for allowing us to earn your support throughout the years.