FIRST QUARTER 2005 Vol.3, Issue 1 Insights

A Quarterly Customer Newsletter

Eight Smart Ways to Use Found Money

Whether you receive cash for gifts, a bonus or a tax refund, consider these suggestions to help get the most from unexpected money.

1. Pay yourself first: Put a portion of the money in your emergency fund, general savings or retirement account. Over time, compounding A Message from returns can turn small amounts our Chairman into big savings. Plus, you may be able to pay cash for big- Greetings from OneUnited ticket items in the future. Bank. We are pleased to pro- vide you with Insights, our 2. Pay off high-interest quarterly customer newsletter. debt: Being debt-free not Through our newsletters we only frees funds to put continue to share our progress toward savings and current in serving the banking needs expenses, it may also help of urban communities and to improve your mental health. provide ideas that may help you achieve financial security. 3. Update your home: New landscaping, another As we look forward to a bathroom or other home successful 2005, we want to improvements can add value thank you for supporting our to your home and make liv- accomplishments in 2004. ing there even more pleasant. ¥ OneUnited Bank had a the loan. And once you have 7. Give it away: Send some record year! We originated 4. Open a college savings 20% equity in the value of extra cash to your favorite more than $150 million in plan: A Coverdell Education your home, you can cancel charity or help a struggling new mortgages with over Savings Account or 529 plan private mortgage insurance. family member or friend. 50% funding and affordable offers tax-advantaged growth multifamily housing in for money to be used for 6. Maintain your car: 8. Take the plunge: Do some- low- to moderate-income school expenses. Proper maintenance, such as thing you’ve always wanted to communities. tune-ups, oil changes, new do: take a hot air balloon ride, 5. Make extra mortgage pay- brakes and replacing tires, visit the Grand Canyon or learn ments: You’ll end up paying can keep your vehicle run- to play the guitar perhaps. The continued on page 3 less in interest over the life of ning efficiently and make it return on realizing a dream can last longer. be priceless.

OneUnited Newsletter Masthead Template (11-6-02) Direct Deposit Guard Against Identity Theft

Managing your money with direct deposit can not only save you time and money, but can help protect you from identity theft as well. With direct deposit, you can minimize the threat of theft and reduce the need for carrying and cashing checks.

You can save time equivalent to approximately three workdays each year by using direct deposit instead of manually deposit- ing checks.* By having your paycheck automatically deposited, you can have access to the funds sooner and eliminate the risk of the check being misplaced or stolen.

Sign Up Today With our direct deposit program, you can have payroll, retirement and Social Security payments deposited in your account. If you’re not already taking advantage of the benefits of direct deposit, stop in to sign up or visit our website at www.oneunited.com for more information.

* Source: NACHA, www.directdeposit.org.

Certificates of Deposit Take Small Steps to Big Rewards

It’s impossible to predict strategy without tying up capture the longer-term CD CDs can help you take interest rate hikes and dips, funds for long periods. rate, which is usually higher. advantage of rate hikes while but with certificates of lessening the impact of deposit (CDs), you can reap To have CDs mature every CDs can supply you with falling returns. Currently, the rewards of a safe savings three months, just open three- income in a couple of ways: interest rates are trending up. month, six-month, nine-month 1) Set up the CDs to pay inter- To benefit the most from this and 12-month CDs. For a est to you monthly, quarterly environment, you may want six-month schedule, open or annually; or 2) Have inter- to choose CDs with short six-month, 12-month, est accumulate in the CD maturity intervals to lock in 18-month and 24-month account and then withdraw the rising rates. CDs. As each matures, interest at maturity. If you renew it at the don’t need income from a CD In addition, CDs provide longest term to in the near term, you can accu- peace of mind that your mulate the interest and renew deposits are federally insured the entire balance to boost the up to $100,000. effects of compounding. At OneUnited Bank, we offer competitive rates on our cer- To benefit the most from rising tificates of deposit. For more interest rates, you may want to choose information about these sav- CDs with short maturity intervals to ings instruments or to open a capture rates as they increase. CD today, please contact us.

A Message from Business Update: Cost-Saving Strategies our Chairman... continued from page 1

Eight Ways to Cut Purchasing Costs ¥ We generated record earnings in 2004, and paid the first dividend When the economy slumps, many businesses are forced to look at ways they can trim costs. But in history to our preferred share- the best cost-cutting program functions equally well in good times as in bad. It also sets priorities holders. Record earnings also based on the company’s bottom line. Purchases that are necessary for business operations or those enabled us to reinvest in the that will allow the firm to grow or become more efficient take precedence. bank to provide better services in 2005. Tips for Cost-Cutting Success Before making a We are very excited about what These eight strategies for trimming costs purchase, analyze 2005 will bring. As one way of can help keep your business on sound how it’s going better serving our customers, we financial footing. to affect your will be introducing a new single- bottom line. family mortgage program to 1. Negotiate. For medium-size or large pur- complement our multifamily chases, solicit bids from at least three vendors, lending. Our goal is to originate and make them vie for your business. Review over $200 million in new mort- relationships with current vendors and renego- gages in 2005. We will also be tiate where necessary. In general, any sole improving our deposit program, supplier whose business hasn’t been rebid in OneUnited Bank Membership, to several years is a good target for renegotiation. make it even more affordable for our members. In addition, we will 2. Get volume discounts from vendors. You be introducing check imaging, may need to be more flexible about delivery debit cards and cash management terms and quantities purchased, but it can be 6. Convert paper records to electronic services in 2005. worth it to receive cost reductions based on records. You’ll eliminate not only the need to volume. Consider setting up a “buying consor- buy paper, but also the expense of storage With your support, OneUnited tium” with competitors or others who buy facilities and personnel. Bank will continue to be the pre- from the same vendors. mier banking institution for urban 7. Use a business credit card for all purchas- communities across America. 3. Buy online. Internet purchases can trim ing, travel and entertainment expenses and fleet purchase order processing costs and reduce spending. You can set Ð and easily change Ð If you want to find out more about data entry errors and correction costs. employee-specific spending controls such as OneUnited Bank products or pro- purchase amount, number of transactions, types vide feedback to us, please explore 4. Establish an incentive program tied to of suppliers and more. Business credit cards our website at www.oneunited.com cost reductions in spending areas employees may also help protect and insure your business or visit one of our branches. can control. In most businesses, the entire staff at no added cost. They often offer benefits such Thanks for your continued support. should be involved in a cost-cutting program, as rental auto insurance coverage, extended war- because costs are incurred by a large number ranties and purchase assurance. A business Kevin Cohee, of employees. Be sure to set some parameters credit card might even offer you discounts at Chairman and to prevent overzealous bulk buying to get one select merchants or rewards for your purchases. Chief Executive Officer more price break, only to have materials sit on the shelf month after month. 8. Get the most from your banking relation- ship. Meeting with your banker periodically to 5. Consider eliminating the purchase alto- review your accounts is a good idea. He or she gether. Before making a purchase, analyze how can help ensure your accounts are the best it’s going to affect your bottom line. If your match for your business, and that you’re not business will operate fine without it, think about paying unnecessary fees. Call to schedule an postponing or eliminating the purchase. appointment now. OneUnited Bank Locations Massachusetts Federal (Headquarters) Insights 133 Federal Street Boston, MA 02110 Roxbury 2343 Washington Street Roxbury, MA 02119

Florida Miami 3275 NW 79th Street Miami, FL 33147 Lauderdale Lakes 2412 North State Road 7 Lauderdale Lakes, FL 33313

California Corporate Office / Crenshaw 3683 Crenshaw Blvd. Los Angeles, CA 90016 Compton 205 E Compton Blvd. Compton, CA 90221 Stocker Check 21 Update 4143 Crenshaw Blvd. Los Angeles, CA 90008 st you may also lose the “float” (the time it takes Ladera The Check Clearing for the 21 Century Act 6810 La Tijera Blvd. (Check 21) took effect Oct. 28, and is now in to clear a check), so you must be sure to have Los Angeles, CA 90045 sufficient funds in your account to cover any full swing. Check 21 authorizes financial insti- Pasadena tutions to create an electronic image of your checks you write. 1335 N Lake Avenue Pasadena, CA 91104 paper check as a legal substitute. OneUnited Bank has been investing in technol- The new check-clearing system eliminates the ogy to ensure a smooth transition to electronic need to physically transport checks across the check processing. For more information about country and allows checks to clear faster. You Check 21 and your accounts, please contact one may have faster access to funds deposited, but of our financial service representatives. If you have any questions, please contact us at 1-877-ONE-UNITED (1-877-663-8648) ✁ www.oneunited.com For telephone banking, call the Link Line Routing Your Refund 1-877-56-UNITY (1-877-568-6489) When you stipulate that your tax refund is to be transferred to your account using direct deposit, make sure you use OneUnited Bank’s correct routing number, which is 011001276. In fact, you may want to clip and save this reminder This publication does not constitute legal, accounting or other professional advice. and keep it with your other tax information so Although it is intended to be accurate, neither the publisher nor any other party it’s handy when you complete your tax return. assumes liability for loss or damage due to reliance on this material. ©2005 Priority Publications, Inc.

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