Sequoia Federal Credit Union Merger

We are dedicated to providing our Member-Owners friendly, professional financial services; while ensuring safety, stability and future growth. This has been our sole purpose since our inception on February 25, 1952. With this in mind, your management and Board of Directors of Sequoia Federal Credit have been in discussions with PremierOne Credit Union for some time to combine our resources. We believe that a merger of these two credit unions with the same Member focused philosophy would be highly beneficial to both memberships. By combining our assets and experience, we can offer you enhanced services, increased access, and additional branches at a lower per member cost.

Please read the enclosed information regarding a special meeting on April 20th at 5pm called by the Sequoia Federal Credit Union Board of Directors.

The Board of Sequoia FCU having 1,675 members and assets of $42 million realizes that in today's challenging environment and tightening profit margins, the Sequoia members would be better served by joining forces with PremierOne Credit union with over 25,000 members and assets of over $550 million.

• An increase of 5 additional branches, with Saturday branch hours
• Access to the shared branch network
• Increased online convenience, including online mortgage application process
• A larger loan and deposit product offering
• Financial literacy seminars and resources
• Increase community involvements including "Savvy Teens," Kids' Club, Student Educational Scholarships (Sequoia FCU previously discontinued)
• First time home buyer empowerment
• Health Savings Accounts (HSA)
• Employee loan discounts
• Dividends on checking
• ADU (additional dwelling unit) loans

Our combined assets of over $600 million will make us large enough to benefit from the economies of scale but still retain our service and delivery. By consolidating, we will realize significant savings in back office operations.

Member deposits will continue to be insured for up to $250,000 by the National Credit Union Administration, a Federal regulatory agency.

Unlike mergers of large institutions and corporations, this merger will give our members greater access and better quality of our services without disrupting the services you are accustomed to receiving.

• None

• PremierOne will be the continuing credit union
• Membership eligibility will expand into Santa Clara County

Enclosed is a combined financial statement. The combination of these two outstanding credit unions will create a strong, growing credit union better able to serve you.

After reviewing the comparative value of the shares of each credit union, the Board of Directors of both credit unions agreed that there would be no monetary adjustment of shares.

You may vote in person at the special meeting on April 20th at 5pm; by mailing the enclosed ballot in the postage-paid envelope to CU Ballot Election Processing at P.O. Box 3156, Dublin, OH 43016; or online by pressing the Begin Voting button below. CU Ballot will control the balloting process and count all ballots. To be counted, all mail ballots must be received by April 19th.

If you have any questions about the merger, please email rkirchner@sequoiafcu.org or visit www.sequoiafcu.org, or you may also stop by our branch office, and we will be glad to help.