1. Visa ® Credit Card Program Management Product upgrades Limit increases

2. Background American First Credit Union $614M in assets 76,000 Members Community chartered

3. Visa Portfolio Maintained the traditional card structure: Classic, Gold and Platinum No rewards program 17,584 open accounts* $37.4M in outstanding balances* Average balance $2,128* *As of January 2004

4. Digging deeper… ClassicGoldPlatinum # of accounts* 8,7435,1313,710 Total outstanding balances* $15.6M$12.7M$9M Average balance* $1,787$2,484$2,437 Average Profit* -$25.68$5.75$29.42 *As of January 2004

5. Product Upgrades

6. The offer: Started March 2004 Upgrade from Classic to Gold

7. Results Automatic upgrade program started 03/04

8. Results Classic profitability increased –Jan. 2004: -$25.68 –Dec. 2004: $28.08 Gold profitability increased –Jan. 2004: $5.75 –Dec. 2004: $44.01

9. Limit Increase and Balance Transfer Promotion

10. Background Need to focus on usage Wanted to increase our average balance Credit limit is a barrier

11. Promotion Mailed Sept. 2004 1% cash rebate on all balance transfers Eligible Members were offered a credit limit increase

12. Balance Transfer Form Online In branch Over the phone Direct mail

13. Results Mailed about 14,000 pieces 409 Members did a balance transfer Almost $1.3M in new balances $67,511 in additional interest income 569% return on marketing investment

14. What did we learn? Perception of cards prestige matters to our Members We must continue to offer annual credit limit increases in order to stay competitive Balance transfer promotions work Continue to focus on usage

15. Questions?

16. Ryan Zilker AVP, Marketing American First Credit Union rzilker@amerfirst.org 562-237-5050 www.amerfirst.org rzilker@amerfirst.org