Credit Union UpdatePage 2

Small Business SpotlightPage 5

2012 CCU OutreachHighlights

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Federally Insured By NCUA

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CCU MakesYour FinancialLife Easier

Our Member Education Program & Newsletter

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SPRING/SUMMER 2013

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Credit Union Update A Message from our President and CEO, Gary Grinnell

Dear Members,

I am pleased to update you on the success Corning Credit Union achieved in 2012! Once again, we faceda year full of national economic challenges. However, despite adverse economic conditions, we achieved significantresults in many areas.

In 2012 we added $6.7 million in earnings to our $90 million in reserves and experienced our 33rd consecutive year of growth and profitability. In addition, we achieved record-breaking loan growth results in 2012, with consumer lending, mortgages, and commercial lending all contributing to this success. Overall, our loan portfolio increased $45 million during the year.We processed more than 5,200 auto loans, nearly 1,300 home equities, and we were once again the mortgage leader in Steuben and Chemung Counties, closing 898 mortgage loans totaling more than $127 million. In addition, our Business Services area was honored for the fifth year in a row as the Small Business Administration’s “Top SBA Community Lender” in the Southern Tier. Most importantly, all of this significant lending activity coupled with historically low loan rates allowed the Credit Union to help thousands of our members save money and improve their financial well-being, buy new homes, improve their existing homes, and invest in their small businesses. We also completed several significant projects across the Credit Union in 2012. Please see the timeline below to view the highlights. These are just a few examples of the important initiatives our team undertook during the year. I am extremely proud of our results and of all those involved.

2013 OutlookIn 2013 we will continue our focus on improving convenience for our members both through branch development and enhancements to our mobile and online services. For example, our team is working on a mobile deposit product that we expect to launch later in the year. This will allow members to make deposits directly from their mobile phones and receive instant credit for the deposit. Also, we expect to begin construction on our permanent office in Leland, North Carolina.Our branch expansion in North Carolina as well as our recent merger in Franklin County, Pennsylvania is part of our strategyto grow and diversify our markets. Diversification is important because it protects the Credit Union from being too relianton one market and creates opportunities to make more loans. Loan growth not only helps our members save money but it also generates the revenue needed to pay the dividends on deposit accounts and deliver new products and services toour members.

It is clear that the economic environment will remain fragile in 2013. As a result, we expect interest rates on both savings and loan products will remain at historic lows and could potentially be reduced further. This presents tremendous opportunitiesfor the Credit Union to continue to help thousands of borrowers like we did in 2012. We also understand that it createschallenges for savers. In this difficult deposit rate environment, we have consistently returned as much as possible through competitive certificate rates, savings rates, and through our Windfall Checking® product. It is always our intention to keep these rates steady for as long as possible; however, we must balance the reduced earnings of our low-risk investment and loan portfolios with the return we pay on deposit accounts. This balance is a financial responsibility we take very seriously because it assures our safety and soundness for our membership for years to come.

Erwin, NY branch opening. Transitioned to a new mortgageprocessing system.

Completion of merger withAmerican Community Federal Credit Union in Franklin County, PA.

Replacement of entireATM fleet.

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The growing regulatory burden over the last several years continues to have a significant impact on our operation. We have added to our staff and devoted significant resources in terms of time and money to managing government regulation. This continues to be a frustration for us and other credit unions as we would prefer to devote resources to areas that add value for our members. For example, recent changes in lending regulations have altered the way we process consumer loans. One impact of this new regulation is that we are no longer able to offer our Qwikloan Check product as a convenience to our members. In addition, you may also notice new forms and paperwork when you apply for home loans. The Consumer Financial Protection Bureau (CFPB) is working on a number of changes to the information you receive, as well as manyother proposed changes to a variety of consumer items related to credit. Lastly, the CFPB has proposed new regulations regarding international bank wires and we expect these changes will impact the Credit Union and our members who send bank wires. We will continue to keep you informed about how these new regulations will impact how you do business with the Credit Union.

CCU remains exceptionally safe, financially strong, and member focused. While we recognize that the economy and these external forces create challenges, rest assured that we will remain vigilant on all of these issues, and that our focus willcontinue to be on responsible financial management, exceptional personal attention to each member, and offering the best possible products, services, and rates. This newsletter highlights a few of our important initiatives such as improvingconvenience for our members, helping our local communities through financial education, and helping small businessowners prosper. We will continue our efforts in these areas in 2013. Finally, I would like to thank all of our dedicated team members and volunteers who contributed to our exceptional performance in 2012. Most importantly, thank you for yourcontinued support and membership. We recognize that none of this would be possible without our members and wesincerely appreciate that you choose to do business with Corning Credit Union.

We look forward to serving you in the year to come!

Sincerely,

Gary GrinnellPresident & CEO

85K+MEMBERS!

Converted to a new debitand credit card processingprovider.

Surpassed the 85,000members mark.

Launched our newBill Pay system.

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CCU Makes YourFinancial Life Easier

We understand that each member has unique financialneeds, whether you seek easy ways to save or borrow money, save time, or ways to access your accounts. That’s why CCU offers many different types of products, services and account access options. Are you aware of the many ways CCU can help you? Sometimes it’s convenient to visit a branch or give us acall, but what if it’s not? We offer secure and convenientaccess to your accounts and solutions to help makemanaging your finances easier from just about anywhere. Here are some examples.

Online DepositsThis FREE service is designed to make it easier for qualified members to deposit checks without going to a CCU office.(You will need to have access to eBranch, a checkingaccount, and satisfy certain criteria in order to use Online Deposits.) Once you are approved, access is simple.Just log in to eBranch and click on the Online Depositslink in the menu on the left. Here’s how it works: • Enter the check details through our eBranch service • Your checking account is credited• Ensure that we receive the physical check(s) via U.S.

Mail within seven (7) calendar days (or your deposit may be reversed).

Your deposit (up to your qualified limit) will be availableimmediately for you to use to pay bills, make cashwithdrawals, or make a transfer. Just call us for moreinformation.

CCU ATMsWithdraw cash or transfer funds at many of our conveniently located CCU ATMs. A number of our ATMs accept deposits as well and provide easy 24-hour access. Additionally, a list of credit unions that will not charge CCU members a fee for transactions made with their CCU ATM or check card is available at www.corningcu.org/find-a-location.

CCU’s eBranch AppCCU’s eBranch App makes accessing your accountseasy too. Whether you carry an Android™, iPhone®, iPad®,or iPod® touch mobile device, Corning Credit Union’s free mobile apps let you manage your accounts, view images of your cleared checks and transaction history 24-hours a day, everyday. Recent enhancements for iPad andAndroid App users include: • Make quick intra-account and cross-member transfers.

• View mortgage details, mortgage history, and make standard mortgage payments in real time.

• Locate address and phone information for the closestCCU ATM or branch.

To get started or learn more about mobile banking go to: www.corningcu.org/mobile-banking.

CCU MobileUse your Internet-enabled phone and browse tologin.corningcu.org to access the same convenientfeatures that eBranch offers via CCU Mobile.

CCU’s Online Bill PayAre you tired of wasting time writing checks, buying stamps, and mailing your bill payments at the post office? CCU’s online Bill Pay can save you time and postage.Make payments quickly, 24/7. Payee set up is easyand payments are sent, on the day you select, directlyfrom your checking account. Visit the CCU websitewww.corningcu.org/online-banking and click on “Log into eBranch” to get started.

These are just a few examples of the ways CCU products and services help make your financial life easier. For more information, please stop in at a branch, call, or visit the CCU website: www.corningcu.org.

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John O’Connor

Owner: John O’Connor

Years in Business: 17

Would you share somebackground about your business?My business has been in operationfor 17 years and currently employs15 people. The business specializesin the installation and repair of commercial plumbing andheating systems for facilities suchas retail businesses, apartmentcomplexes, churches, medicalfacilities, and schools.

How and why did you start your business?As a teenager, I took on various part-time jobs to earn a living, includingone working with the owner of a plumbing business. My mother and I moved from Hoboken, NJ, to this area when I was 18. I needed toearn money, and started my businesswith few resources and a family tosupport. I ran the business with my own cash, vehicle, and tools, from my home. Within two years, I had four employees. Several years later, it seemed sensible to join forces with another local business owner, to pooland leverage our resources. That business combination thrived, but I was feeling dissatisfied for somereason, so I left that joint venture after about 18 months. I took timeto decide what I wanted to do next. In 2002, I started another business venture in commercial plumbing andheating and enjoyed success again. Today, I continue to have a positive outlook for the future of my business.

What were the biggest surprises orchallenges regarding the business?

I was surprised and challenged by the government bureaucracy with

Workman’s Compensation, healthcare costs, and the amount of timeI as a small business owner had todevote to keeping up with theadministrative side of running abusiness with employees. Thegovernment really makes it difficultto be a small business owner. I wish they would simplify things.

What was your biggest frustrationas you sought out a financialinstitution to help make yourbusiness a reality?Since I was working with whateverfinancial resources, space, equipment, and skills I personally had, I didn’t really have the frustrations some startups experience. I took a minimal salary from my business. I savedand invested in my business as my income and savings allowed. I was, and still am, very fiscally conservative. I prefer to be debt free, but there are times when some debt is necessary and helpful.

What motivated you to talk withCorning Credit Union about yourbusiness needs?

I often heard people in the business community speak very positively about CCU and the way it workswith business owners, but it was one of my employees that persuaded

me to talk with CCU. At the time,I had a line of credit, businesscredit cards and company debt.I contacted my bank to request a loan to cover the tax bill. They took five months to call me back. After hearing about that situation, oneof my employees, a contractor,dialed his CCU Business Servicescontact and handed me the phone. That’s how I finally talked with CCU. Their representative explained howCorning Credit Union could help.I switched my checking account, consolidated my debt, andrefinanced the commercial loanon my business building with Corning Credit Union.

How has CCU helpedyour business? A CCU business loan allowed meto consolidate and pay off all of my debt, which I really wanted to do.It has improved cash flow for mybusiness, which means that day-to-day expenses are much easierto manage.

CCU is great, from the memberservice representatives to everyonein Business Services. They alwaysreturn my calls, their service isoutstanding, and their interest rates are not only competitive, they’reoften lower than what I can findelsewhere. The Business Servicesrepresentatives are easy to workwith – they really understand smallbusinesses and their challenges.

Small Biz Spotlight: O’Connor Plumbing & Heating, Elmira, NY

CCU is accepting new businessmember applications. Tolearn more, visit a branch, logon to www.corningcu.org/for-your-business, or call us at 800-677-8506.

CCU takes great pride both in bringingfinancial education to our community andin volunteering to help worthwhile causes.Thank you for supporting our efforts. We deeply appreciate it!

Here are some of the highlights of our 2012 outreach efforts:

Yooutthh Foocus • CCU delivered more than 130 financialeducation programs during 2012, reaching more than 2,100 pre-K to college agestudents in 21 different schools.• Representatives from our BOCES student-run branch gave presentations about theimportance of developing healthy saving habits and the differences betweencredit unions and banks to 137 of theirclassmates and to 58 students from alocal middle school.

Addulltt FoocusWe experienced one of the highest levels of participation ever by adults in our financial education presentations.• More than 150 parents and teachers

attended the seminars we hosted. • One parent education program covered how to establish an allowance and teach children about managing their money.• We also offered an extensive college

preparation presentation for parentsand their teens.

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• Local high school teachers toured our main office to better understand credit unioncareer opportunities and essential skillsemployers expect from employees.

• We helped educate fellow credit unionprofessionals and teachers about Mad City Money, a budgeting simulation program for teens, during the Credit Union Association of New York’s 2012 Financial Education Summer Training program.

Coommmmuunity Focus Always actively involved in efforts to support good causes, CCU volunteers reached out to thousands of people by participating in a wide variety of events held in the communities we serve. Here are a few examples: • Sidewalk Sale Days in Greencastle, PA• The University of North Carolina - Wilmington’s Involvement Carnival• Strong Kids Safe Kids• Wisner Market

• SCT & Corning Counselors AssociationCollege Information Day

We will continue to expand our financialeducation outreach throughout 2013. If you have a group in need of financial education or tours, please contact Neil Folnsbee, Youth Program Coordinator: 800-677-8506 or 607-962-3144, ext. 582, or neil.folnsbee@corningfcu.org.

2012 CCU Youth, Financial Education and Community Outreach Highlights

Golden DuckCCU’s Golden Duck Award WinnersThe Golden Duck Awards are awarded annually to CCU team members who best provide the superior level of Quality, Convenient, and Knowledgeable Service that truly sets CCU apart from other financial institutions. CCU team members fondly refer to these key characteristics as “QuaCKS,” so the duck is an appropriate symbol to represent the award. We are proud to announce and congratulate the 2012 recipients.

March of Dimes - Jeans Day

Strong Kids Safe KidsWisner Market

Mad City Money

Susan G. Komen - Race for the Cure

Desiree Bowler earned this year’s Golden Duck Award for Operational Excellence. Desiree hasbeen with CCU for 16 years and in her current role in the Human Resources department for four years. The team members who nominated Desiree said that her teamwork and flexibility knowsno boundaries, and that “what can I do?” and “where do you need me?” are questions shefrequently asks. They further describe Desiree as the epitome of flexibility, professionalism, and teamwork. She truly understands and operates by the one Credit Union team philosophy and isa great role model.

Shawn Hills of the CCU Wealth Strategies department is the 2012 Golden Duck Award winner for Service Excellence. She has been with Corning Credit Union for nine years and in her current role for more thaneight years. Shawn’s teammates describe her as someone who hasan impeccable work ethic and a consistently positive attitude.Her wealth of knowledge makes her the go-to person in herdepartment. Coworkers and members consider Shawn to be an exemplary model of what it means to go above and beyond for members every day. Her teammates also agree that Shawnis trusted and adored by her members.

Peer-to-Peer Education

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Board of DirectorsEugene F. Saunders, ChairmanKevin G. Corliss, Vice ChairmanWilliam J. Schultz, TreasurerLori M. Fagan, SecretaryStephen D. CampbellKurt FischerJoseph J. MonagoChristine NagelJoseph M. SchimizziJames R. SteinerCharles W. Vail Jr.

Supervisory CommitteeChristine Nagel, ChairmanShirley P. MagañaDr. Kathy W. MooreDave Sweyer

Helpful Information800-677-8506607-962-3144Dial Accounts Direct (D.A.D.®)800-677-4240607-962-2999

On the web:www.corningcu.org

Email:mailus@corningfcu.orgNewsletter Feedback:straighttalk@corningfcu.org

The Pulse of Corning Credit UnionAs of 12/31/12

Net Worth .................... $90 MillionTotal Assets .....................$1 BillionTotal Loans ................ $640 MillionTotal Deposits ............ $887 Million

Holiday ClosingsMemorial Day, May 27th

Independence Day, July 4th

Labor Day, September 2nd

Columbus Day, October 14th

Veterans Day, November 11th

Thanksgiving Day, November 28th

Christmas Day, December 25th

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. CCU is an equal opportunity employer and is working under guidelines of Executive Order 11246.

Approval for financing is subject to lending guidelines and credit qualifications.

This publication does not constitute legal, accounting, or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.

©2013 Corning Credit Union

Stop in and see us at any one of our branch locations!

NEW YORK Main Office One Credit Union Plaza PO Box 1450 Corning, NY 14830-1050 Big Flats Branch Minier’s Plaza 84 Canal Street Big Flats, NY 14814

Elmira Branch Wegmans Plaza 1100 Clemens Center Parkway Elmira, NY 14901

Horseheads Branch 101 John Roemmelt Drive Horseheads, NY 14845

Market Street Branch 87 East Market Street Corning, NY 14830

Erwin Drive-Thru 253 S. Hamilton Street Painted Post, NY 14870

All New York Offices 607-962-3144 or 800-677-8506

NORTH CAROLINA Racine Drive Branch 125 Racine Drive Wilmington, NC 28403 910-392-6688 Leland Branch 60 Gregory Road, Suite 5 Belville, NC 28451 910-392-6688

17th Street Extension Branch 3715 Patriot Way Units 111 & 113 Wilmington, NC 28412 910-392-6688

PENNSYLVANIA Charleroi Branch 100 8th Street Charleroi, PA 15022 800-677-8506 Greencastle Branch 677 South Antrim Way Greencastle, PA 17225 800-677-8506

Chambersburg Branch 405 Wayne Avenue Chambersburg, PA 17201 800-677-8506

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SPRING/SUMMER 2013

CCU LoanMAKE VER

Ask for a FFFFFFFFFRRRRRRRRRRREEEEEEEEEEEEEEEEEE loan review with a CCU lending specialist!

Refinance and Save!

Membership eligibility required. Approval for fi nancing is subject to lending guidelines and credit qualifi cations. The rate and term you receive will bedetermined by your credit history. Must be a refi nance from another institution.

Mobile banking. Everywhere you are.