“ Being involved with the surrounding community isn’t something paid lip service to at

Freedom First Credit Union. [It] has become a community development company, which is also in the

banking business.”

~Gene Marrano, Valley Business Front Magazine

Federally insured by NCUA. © 2013 Freedom First Federal Credit Union

Helping People Prosper

2011-2012 COMMUNITY IMPACT REPORT

Since 1956, Freedom First has been dedicated to building sustainable communities through

customized financial products and programs that address transportation, affordable housing,

and personal banking needs.

For years, we’ve been working behind the scenes to develop programs and partnerships that

benefit our members and the community we all share. That work is changing our members’ lives

every day—one program, one loan, one conversation at a time. This Community Impact Report

looks back on some of that work, and those conversations.

Collaboration and Partnership .............. 3

Affordable Housing ................................4

FHLB Set-Aside Programs ...................... 5

Impact Banking ...................................... 6

Credit Builder Success ............................ 7

Responsible Rides .................................. 8

Financial Education ............................... 9

Community Giving ............................... 10

Spirit of Service .................................... 11

Recognition and Awards ...................... 12

Free Ice Cream ...................................... 13

Looking Ahead ..................................... 14

The Community Development Team ... 16

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Contents

12/2011 12/2012 Assets $256,537,369 $292,114,693Shares $198,701,870 $223,813,017Loans $209,065,745 $232,647,649Members 39,261 44,932

Freedom First at a Glance

More Than a Mission Statement

At Freedom First, our commitment to financial inclu-sion and the provision of asset-building opportunities has been steadfast since our founding in 1956.

Economic changes over the past decade have made that commitment more challenging. The old stand-bys—access to credit, a robust housing market, secure employment—are no longer available for many of our members and much of the larger community. So in 2008, we took a fresh look at our mission and goals and concluded that we could be doing more. We hired a full-time Community Development Coordinator to create a financial education program and develop products and services to address the financial needs of underserved people and organizations.

The effects of the new program were felt almost immediately and we continued to expand it. We designed a unique suite of Impact Banking products and services specifically to help unbanked and under-banked people achieve their personal and financial goals through financial education, credit-building programs, and savings and loan opportunities. These programs give our members an affordable option in what can otherwise be a predatory marketplace.

In a few short years, our Community Development department has grown into a dedicated group of nine full-time professionals who develop, fund, implement,

and report on Credit Union programs, products, and services that truly do help people prosper.

In 2011-2012, we approved 2,174 impact loans, total-ing $2.6 million, and granted $29.8 million in housing loans to low- and moderate-income households.

Because more than 60 percent of Freedom First’s membership is considered low/moderate income, we sought and earned designation as a Low Income Cred-it Union by the National Credit Union Administration and as a Community Development Financial Institu-tion (CDFI) by the U.S. Department of the Treasury. These designations demonstrate our commitment to serving a range of community and economic develop-ment goals. As the largest CDFI in Virginia, we’ve been able to effect real change for our members and our community through partnerships with local nonprof-its, businesses, and governments.

This Community Impact Report reflects on our mission and vision, which have broadened beyond helping our members prosper to include developing sustain-able solutions to persistent community challenges.

FREEDOM FIRST2

Paul PhillipsPresident/CEO

Dave ProsserVP, Community Development

Collaboration and Partnership

Partnerships such as these are vital for program sustainability, especially in an economic climate where each entity’s resources are limited. Partnerships ensure that many stakeholders are committed to the efficiency and effectiveness of every initiative. Some of our other partnerships include:

Goodwill of the Valleys—we provide financial education to Good Guides Mentoring Program participants.

Junior Achievement—Freedom First employee volunteers teach an average of 35 classes per year.

Virginia Cooperative Extension—we offer monthly financial education seminars open to the public in cooperation with other credit unions.

Roanoke Valley Financial Fitness Coalition—we partner with the City of Roanoke, United Way of the Roanoke Valley, Virginia Cooperative Extension, Big Brothers Big Sisters of SWVA, and SunTrust Bank to organize, focus, and report on the impact of financial education.

Bank-On Roanoke—we partner with the City of Roanoke, United Way of the Roanoke Valley, and SunTrust Bank to give unbanked and underbanked populations access to mainstream financial services as an alternative to predatory lenders.

Total Action for Progress—we provide financial education and IDA program accounts (see p. 6) for participants in TAP’s Fathers First, Head Start, Transitional Living, and VA Cares programs.

Federal Home Loan Bank-Atlanta—we partner with the City of Roanoke’s Code Enforcement Department, Blue Ridge Independent Living Center, Rebuilding Together Roanoke, cafe2, and Habitat for Humanity in the Roanoke Valley on weatherization and accessibility projects for homeowners.

2011-2012 COMMUNITY IMPACT REPORT

Freedom First is a recognized leader in bringing area nonprofit organizations, businesses, and local government together to collaborate in advancing the collective goal of community and economic development in Virginia’s Valley Region.

Our award-winning Responsible Rides program owes its success to a shared vision among Freedom First, Enterprise Car Sales, Total Action for Progress, and New River Community Action. The nonprofits provide client intake and assessment services, the Credit Union provides financing and financial education, and Enterprise provides reliable vehicle options at a reasonable cost to eligible applicants. Each partner’s participation is vital to the success of the program, which has been described as a model for other credit unions to emulate.

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Affordable Housing

Francisco and Imelda Zuniga are first-generation immigrants who own a small business and are leaders in their church. They sat down in 2010 with Freedom First’s financial educator to assess their financial situation and put together a budget.

Medical costs and their daughter’s college tuition had wiped out their savings and left them with signifi-cant debts. Francisco’s credit score was only 500, so repairing his credit was critical to success. The Zunigas worked with Freedom First’s Affordable Housing Specialist over the course of a year, and established a firm financial foundation through credit counseling, continuing education, and regular payments on a Credit Builder loan and secured Visa® card.

At the end of 2011, Francisco’s credit score had risen to 640 and the Zunigas moved into the home they purchased with down payment assistance and a 30-year fixed-rate portfolio loan from Freedom First.

FREEDOM FIRST

We offer a full suite of home loans and home equity loans and lines of credit to serve every borrower, from conventional loans to wraparound services for those whose potential is overshadowed by little or no credit. Our programs include Affordable Alternatives with customized underwriting, down payment assistance, Federal Home Loan Bank set-aside products, and federal programs such as those for veterans, rural homes, and Title I rehab loans.

In 2012, we expanded the Community Development team to include an Affordable Housing Specialist to work with hopeful home buyers struggling with debt and credit issues. Each client’s path to homeownership benefits from a custom approach to credit building, savings, and down payment assistance.

2011-201232 affordable housing loans 21 purchases / 11 refinances

$2.85 million loaned average loan $89,058

“ We could not get student loans for our daughter’s college tuition, and we fell behind in other payments, mostly medical bills. Freedom First helped us re-establish and build good credit, and qualified us for a mortgage. We trust Freedom First Credit Union.”

~Francisco Zuniga

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Success Story: From Poor Credit to Homeownership

Freedom First Product/Program

Timeline March 2010 April 2011 December 2011June 2011June 2010 December 2010

Basic Financial Education

Advanced Financial Education

Fixed-Rate 30-YearPortfolio Home Loan

Down PaymentAssistance

(FHLB Set-Aside Program)

Credit Builder Loan+ Secured Visa®

Credit Counseling

500Credit Score 542 572 640

FHLB Set-Aside Programs

When Sam and Mary Vargas bought their trim little brick house in 2004, they knew it would need some updating. But it was solidly built and affordable on a teacher’s salary, and the neighborhood was beginning to change over from retirees to young families.

They soon learned that their inefficient windows rattled in the wind, and the entire upstairs lacked insulation. For several years, they paid to heat and cool the outside as much as the inside. “There were rooms we couldn’t use at all depending on the season,” said Sam.

They replaced their windows and insulated their attic and then applied for the FHLB Weatherization Set-Aside program to update their heating/cooling system and replace their roof. “It’s made a significant difference in our energy bills,” said Sam. “Even with the work we had already done, we were still throwing money away every month. Not anymore.”

The FHLB-Atlanta’s Set-Aside program gives qualifying participants access to up to $12,000 ($15,000 for the veterans program) for qualifying projects that improve

the safety and efficiency of their home. The Vargas’s efficient new central air-conditioning system means the upstairs bedrooms are comfortable year-round and the living room floor is no longer too cold for their children to play on.

Freedom First and the FHLB, which administers the program, realize that helping hard-working families like the Vargases protect their biggest investment has an impact that extends far beyond the temperature in the house. A well-maintained home is a benefit to the neighborhood, which in turn stabilizes the property tax base, thereby benefiting local businesses and schools. As a teacher in Roanoke’s public schools, Sam Vargas recognizes those far-reaching benefits. “We’ve been with Freedom First a long time,” he said, “and we’ll never bank with a big bank again. Programs like this one, they really help families a lot.”

2011-2012 COMMUNITY IMPACT REPORT

Rather than creating new programs from scratch, we actively seek out partnerships with businesses, nonprofits, and local governments that have effective programs in place. An example of a successful partnership is our work with the Federal Home Loan Bank Set-Aside programs. Established in 2011, the programs help individuals and families purchase or improve the accessibility, safety, and energy efficiency of their homes.

Local nonprofits refer borrowers—who earn no more than 80% of the HUD median income—to Freedom First. Once they qualify, local contractors carry out the work.

Outside Funds Being Invested in Our Community

Down Payment Assistance (includes financial education) 11 homes / $47,342

Homelessness Prevention 20 code enforcement referrals 14 jobs created/retained

Rehab/Weatherization 62 homes / $717,365

Veterans Programs 7 homes / $102,880

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Insulating Their Investment: Energy-Efficiency and Weatherization

Impact Banking

Borrow & Save LoansBorrow & Save is a partially secured, 12- to 36-month loan that makes a portion of the loan proceeds available on approval and places the remainder in a locked savings vehicle to be released at maturity. This gives borrowers an opportunity to build good savings habits by repaying the loan before the second portion is available. On successful repayment, Freedom First invites the borrower to invest some or all of the funds into a CD with a preferred interest rate, allowing for additional funds to be available should future unexpected expenses arise.

Credit Builder LoansHaving little or no credit is a catch-22: lending to borrowers with low credit places lenders at higher risk, so they charge higher interest rates, which makes repayment more difficult. Credit Builder is a small loan that works in reverse to help borrowers build credit: the loan proceeds are placed in a secure account while the borrower makes regular payments on it. When fully repaid, the borrower receives the loan proceeds. By establishing a positive payment history, borrowers improve their credit score significantly in a relatively short time. This positions them to qualify for lower interest rates in the future.

Individual Development AccountsThrough a partnership with Total Action for Progress, we offer a matching savings plan for low-income individuals who want to save for a home, start a business, or pay for their education. Freedom First provides financial counseling to program participants.

Micro LoansUnsecured loans of up to $3,000 don’t generate the kinds of profits that most banks find worthwhile, but the impact of a small loan can be enormous. In many cases, a Micro Loan can be all that’s needed to help borrowers regain their financial footing.

Payday Alternative LoansHigh-interest, high-fee payday lenders do not have to be the lenders of last resort for hard-working Virginians who have cash-flow emergencies in between paychecks. Extraordinarily high interest rates make the cycle of debt even harder to escape. Freedom First’s Payday Alternative Loan, the first of its kind in the region, is a viable alternative that saves borrowers money and introduces them to the benefits of credit union membership.

FREEDOM FIRST

Our mission is guided by the belief that everyone should have access to affordable financial services. In our service area, almost a full quarter of households are unbanked/underbanked.* Impact Banking products and services are designed with those members in mind: workers with unreliable transportation; families with health-care concerns; borrowers trying to avoid or escape the predatory lending cycle.

2011-2012Borrow & Save 128 loans opened (new program in 2012) average loan amount: $1,823 top borrower needs: build credit pay off medical and other bills

Credit Builder people with no credit raised their score to an average of 600+ over 6 months

Micro Loans average loan amount: $1,479 top borrower needs: transportation costs home repairs debt consolidation medical costs

Payday Alternative Loans average savings per borrower: $575

“ Businesses have a responsibility to seek out ways to be good community citizens.”

~Keith Rickoff, CFO

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*BankOn.Org (December 2011)

Credit Builder Success

Steven Wright didn’t spend much time on the road during the summer of 2012. As a mobile mixer operator for Lanford Brothers Co., he’s spent the past 6 years traveling to job sites throughout the mid-Atlantic, but that’s about to change as his boss prepares to retire and he prepares to take over the job.

Steven is pretty happy about the impending change for two reasons. A promotion and a raise are always nice, of course, but not being on the road so much means he gets to return every night to the home he and his wife were finally able to purchase last year after renting it from a family member since 2006.

When he came to Freedom First in late 2010, Steven had a good job but no credit and no assets. “At 22 years old, I got wild and got into trouble, and basically lost everything I had then. I was down to nothing, not even knowing if I would have a roof over my head. I don’t want to go through my life like that. I knew that I needed credit.”

The hard-working young man was a perfect candidate for Freedom First’s Credit Builder program. A Credit Builder loan and secured Visa®, together with one-on-one financial education, help borrowers develop the habit of making regular, timely payments while establishing a positive credit history.

Steven worked with Freedom First to establish a budget and payment schedule, and soon was able to upgrade the secured Visa to a regular Visa credit card. “I got the credit card just to keep an ongoing line of credit,” he said. “At that point I could’ve gone out and got a $5,000 credit card and charged $4,000 on it,

but then I’d just have a bunch of junk and no place to put it.” Instead, Steven set the groundwork for home ownership. “If you rent, you don’t have anything to show for it. I want my daughter to know that 10 years from now, 20 years from now, she knows where I’m at, she’s going to know ‘that’s my home.’”

In less than a year, Steven had established a credit score of 732, and he was ready to purchase a home. Freedom First has a full suite of first-time homebuyer and down payment assistance programs, but Steven did not need to rely on any of them. The Credit Union offered him a conventional fixed-rate mortgage at a low interest rate based on his credit history. “I’ve dealt with big banks before, and this has been the smoothest, easiest process,” he said. “No matter what branch I’ve gone into, everybody just meets you with a smile and it makes you feel really good to be around. I don’t foresee myself ever going to a major bank again.”

Credit Builder offers borrowers a second chance, but for it to work, the borrower needs to be disciplined and adopt good money management habits. Steven understood that. “I could have gone two ways with it,” he said. “I could have grabbed the opportunity and failed, or I could have grabbed it and run. After I realized the opportunity I had, I was going to grab it and go.” Still taking the long view, Steven hopes to eventually purchase a larger home and turn his current home into a rental property. “I most definitely have put to work what y’all have helped me accomplish.”

2011-2012 COMMUNITY IMPACT REPORT

“I’ve dealt with big banks before, and this has been the smoothest, easiest process.... I don’t foresee myself ever going to a major bank again.”

~Steven Wright

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Responsible Rides

The Dungee family relied on public transportation until they learned about Responsible Rides. Tonya, a property manager, needed a reliable vehicle to visit properties throughout the Roanoke Valley. Her old car had required regular, expensive repairs. “The brakes would give way at any time,” she said. Tonya feels much safer with the vehicle she purchased through Responsible Rides, and having it has made her a more reliable employee. “It has transformed our life so that we can do more things as a family, too,” she said. Her husband Reginald agrees. He can now travel to his son’s basketball tournaments safely, giving the 7th-grade team he coaches more opportunities to excel. With a smile, he said, “Responsible Rides turned me into a chauffeur.”

Christina Langhorn, a private-duty nurse, learned about Responsible Rides from a friend. She works in various locations with varying hours, so public transportation is impractical and often unavailable. “Having a car has helped me in my work,” she said, “because now I have reliable transportation. A lot of people can benefit from this program, such as teachers, police officers, and nurses.”

Augustine and Christine Vergies, retired and on a fixed income, could not qualify for a loan on a safe, reliable car at a reasonable interest rate. Until they qualified for Responsible Rides, they had to rely on family and friends to take them shopping and to doctors’ appointments. The car “has given us independence,” said Christine. “We don’t have to rely on anyone to take us back and forth.” The couple believe the financial education and vehicle maintenance training are the most important part of the program. “I learned how to do my budget better than I was doing,” said Christine. “This program is important because it gives you opportunity.”

FREEDOM FIRST

This award-winning partnership between Freedom First, Total Action for Progress, New River Community Action, and Enterprise Car Sales incorporates financial education and vehicle maintenance classes to prepare borrowers not just to purchase an affordable, reliable vehicle, but to maintain it. In 2012, we brought on a full-time Responsible Rides coordinator to streamline the lending process for borrowers.

2011-2012

61 loans issued average vehicle cost $10,282 average borrower income $16,308 average borrower credit score 579

Borrower Profile 89% female 51% single parents 164 minor children represented

8

Images on this page provided as PSA video stills by Red Velocity.

Christina Langhorn

The Dungee family

Augustine and Christine Vergies

Financial Education

Community Educator

In 2011, Freedom First created a new full-time position for a community educator. The educator spends his days not in the office, but in the community, talking with teachers and students, nonprofit agencies, members, and small business owners. Developing ongoing relationships enables Freedom First to respond to a client’s changing needs as they arise, and the community educator has developed a customizable financial education curriculum.

Working with individuals and groups, Freedom First teaches everything from basic money management to understanding credit and saving for a first home purchase. Clients range from families unsure how to free up home equity to pay medical bills, young people aging out of the foster care system who want to make the most of their first job, and schools and nonprofit agencies that want to offer financial education to their employees and the populations they serve.

2011-2012 COMMUNITY IMPACT REPORT

Most financial institutions offer some financial education to their customers. In keeping with our deepening commitment to sustainable community development, Freedom First takes financial education further by developing a comprehensive, customizable financial education curriculum to help individuals, households, schools, businesses, and nonprofit agencies reach their financial goals.

To enhance the financial education program, several staff members earned FiCEP certification from the Credit Union National Association. With CUNA-certified financial counselors on staff, Freedom First helps borrowers receive financial education tailored to their situation, so they can make the most of the programs, products, and services that best suit their needs.

20121,460 people received financial education 1,361 through partnerships (schools, churches, and nonprofits)

99 through Money Mondays 54 one-on-one counseling

“ I earned scholarships for college from a lot of the organizations we work with. I love that I am able to pay some of that back.”

~Kristopher Taylor, Community Educator

9

Community Giving

Community GrantsOur nationally recognized program awards grants to activities, programs, and initiatives that contribute to the following focus areas:

Community and Household Economy—improving the economic well-being of our community and its citizens, such as through poverty reduction, affordable housing, and financial education.

Health and Human Services—extending individuals’ ability to be independent and productive, and addressing or preventing social, psychological, or physical problems or disabilities.

Arts and Culture—increasing access to and promotion of the arts and the development and enhancement of cultural identities.

Academic ScholarshipsOur scholarships lighten the financial load of hard-working students who are trying to reach their academic goals. An example is Lucas Tyree, who has earned Freedom First’s $1,000 Fritz Kehn scholarship 3 years in a row. The scholarship is named for one of Freedom First’s charter members, a General Electric sheet metal foreman who became the first Credit Union manager.

After graduating from Salem High School, Mr. Tyree earned an undergraduate degree in agriculture and is now pursuing graduate studies at Yale University. He is the first person in his family to attend college, and he plans to return to Virginia once he completes his studies to teach sustainable agriculture practices.

FREEDOM FIRST

As the largest Community Development Financial Institution in Virginia, we know that directing our support to organizations and events that have the most positive, lasting impact in the local community helps not only the organization receiving the grant, but the community as a whole.

2011-2012$43,050 Community Grants Adult Care Center of Roanoke Valley Boys & Girls Clubs of SWVA Community High School Community Outreach Program of Roanoke Girl Scouts of Virginia Skyline Council Intellectual Disabilities Agency of the NRV Katie’s Place Farm NRV Cares Rescue Mission Roanoke Children’s Theatre Roanoke Community Garden Association Roanoke Redevelopment & Housing Authority Total Action for Progress Virginia Cooperative Extension

$13,000 Academic Scholarships Cabell Brand Center for Global Poverty and Resource Sustainability Studies Scholarship (began in 2012) Charles Perkins Scholarships City of Salem/Frank Turk Scholarship Fritz Kehn Scholarship Torie Phillips Memorial Scholarship Big Creek High School District Scholarships, War, WV (through 2011)

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“ ’Thank you’ doesn’t do justice for the appreciation of the help you’ve given me.… I was able to graduate magna cum laude with a 3.82 GPA.… I got to focus more on my classes because Freedom First gave me that edge to continue on…. Thank you for instilling confidence in me and helping me to succeed.”

~Lucas Tyree

Spirit of Service

Community Work Day Each year on the second Monday in October, financial institutions across the nation take a holiday. At Freedom First, our staff put on jeans and work gloves to spend Columbus Day giving back to the community.

We partner each year with a half-dozen or more area nonprofit agencies to complete projects the organizations can’t finish on their own. Projects over the years have included building and renovating wheelchair ramps, painting walls inside and out, hanging gutters and downspouts, helping families apply for a holiday gift program, and creating community gardens. In 2012, we prepared the West End Center for Youth for the new Freedom First branch, community center, and community kitchen to be built on its property (see pages 14-15).

2011-2012 COMMUNITY IMPACT REPORT

Freedom First’s spirit of service and commitment to collaboration and partnership create a culture of community building that includes the entire Credit Union. We were named one of Virginia’s “Best Places To Work” in 2011 and 2012 by Virginia Business magazine, and staff are nearly unanimous in stating that our commitment to Community Development is the primary reason they are proud to work here.

Our own Board of Directors and Supervisory Committee are staffed by volunteers, and our executive staff and management take on active leadership roles with nonprofit agencies, advocacy organizations, and trade groups whose missions align with our core values.

2011-20124,806 community service hours

$151,785 in donations of time and money

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“We are honored that Freedom First includes NRV Cares in their Community Work Day plans. Thank you for what you do for the community!”

~Bev Walters, NRV Cares

Recognition and Awards

CDFI Grant Funding Award: $850,000 to develop financial services in Roanoke’s West End neighborhood. Our considerable expertise in financial education and community development is empowering neighborhood residents and area businesses to revitalize the area.

U.S. DOE Block Grant Funding Award through Virginia Department of Mines, Minerals, and Energy: $167,000 to administer a loan loss reserve fund to support energy-efficiency loans.

IPA/Yale University and the Ford Foundation: $15,000 to develop “TGIF,” a micro-loan program that also measures consumer behavior as it relates to borrowing and saving habits.

National Federation of CDCUs: $5,000 to develop “Borrow & Save,” a partially secured loan program.

CDFI Technical Assistance Grant: $6,000 to implement a mapping project using PolicyMap, allowing us to better match our programs to those who can benefit the most from them.

Opportunity Finance Network/Starbucks Initiative: $2,460 to foster job creation through the vote-give-grow campaign.

FREEDOM FIRST

The CDFI designation solidifies our commitment to development services for individuals and nonprofits with limited resources. Our aim is to equip our members with the tools they need to reach their financial goals, and our community partners with the capital they need to implement their projects and fulfill their missions.

Our comprehensive and measured approach to sustainable Community Development has been validated by our regulator and industry leaders who recognize the value of collaboration in efforts to effect positive systemic change in distressed communities. Awards we’ve won and partnerships we’ve developed allow us to leverage our resources even further.

2011-2012CUNA-Virginia Credit Union League: Dora Maxwell Award for Social Responsibility, 2011

NAACP-Roanoke: Corporate Citizen of the Year, 2011

U.S. News & World Report’s Money Blog: Top 10 Community-Oriented Credit Union, 2011

Virginia Business Magazine: One of Virginia’s Best Places To Work, 2011-2012

Roanoke Regional Chamber of Commerce: Small Business of the Year Nominee, 2012

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Brenda Hale, President, NAACP-RoanokePaul Phillips, President/CEO, Freedom FirstPearl Fu, Executive Director, Local ColorsDavid Bowers, Mayor, City of Roanoke

Free Ice Cream

2011-2012 COMMUNITY IMPACT REPORT

Few people get excited when a bank employee approaches them for a conversation. They’re wary of the hard-sell and just want to go about their day, tending to their finances on their own time. For a full quarter of people in our service area who are unbanked or underbanked, that wariness is heightened by experiences with predatory lenders and traditional financial institutions that don’t see them as profitable.

That’s where Scoop comes in. Freedom First bought an old ice-cream truck to deliver free ice cream at student, nonprofit, and community events throughout the Roanoke and New River Valley communities. When Scoop arrives loaded up with several different frozen treats (including sugar-free!), staff and volunteers are there to hand out smiles and build relationships—not to sell products. Information about financial education is available, but Scoop doesn’t carry sales brochures.

No sales pitch.

No expectations.

No strings attached.

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Looking Ahead

We laid the groundwork for our largest and most important partnership throughout 2011 and 2012. As 2013 begins, Freedom First, the City of Roanoke, the West End Center for Youth, and the U.S. Department of the Treasury are ready to break ground on a revitalization project designed to bring much-needed services to a historic, struggling Roanoke neighborhood.

The project is made possible by an $850,000 CDFI Fund grant that will allow us to develop, staff, and operate a Freedom First branch in the neighborhood. Scheduled to open at the end of 2013, the project will also include a community center, a shell for a future community kitchen, and a permanent home for a local farmers’ market.

The city of Roanoke awarded the nonprofit West End Center a $343,176 block grant to develop the property it owns, and local businesses Building Specialists and Interactive Design Group offered their services pro bono or at reduced rates. Community leaders and residents have offered invaluable input and support for the project throughout the planning process.

“We see this as becoming a hub for this neighborhood,” said West End director Joy Parrish, “and a catalyst for revitalization.”

FREEDOM FIRST

As we look toward 2013 and beyond, we remain dedicated to partnering with businesses, community organizations, and local, state, and federal agencies that share our goals of sustainable community development. We have in place a strong foundation of programs, products, and services developed with our members’ best interests in mind, and we will continue to develop new programs as our members’ needs change. Small business lending, nonprofit lending, and affordable housing and transportation will be key focus areas in the coming years.

“ Roanoke is fortunate to have a financial institution like Freedom First invest in an underserved community. I commend them for taking the lead in this important initiative that can make a real difference in people’s lives.”

~Chris Morrill, Roanoke City Manager

14

Looking Ahead

2011-2012 COMMUNITY IMPACT REPORT

Other Projects in DevelopmentFreedom First is committed to ensuring a prosperous future for families and commu-nities throughout the Valley Region—one member at a time.

We continuously refine our program offerings to meet the changing needs of our members and the larger community. In 2013, we will work to address the following needs: Loans for aspiring U.S. citizens Loans for job-seekers Financing for commercial driver training Lending for micro-businesses

15

The Community Development Team

The Community Development TeamDave Prosser, VP Rod Nuñez, AVP

Tomeka Akerson, Responsible Rides CoordinatorCorey Brickers, Branch Manager (not pictured)Ellen Conner, LenderNicole Pendleton, AnalystKristopher Taylor, EducatorJeremy Waldoch, LenderAllison Wolf, Mortgage Loan Representative

FREEDOM FIRST

Fewer fees, great rates, and local decision making are just a few of the ways being part of Freedom First benefits our members every day. To meet our goal of having a sustainable positive impact on the Roanoke and New River Valleys, we have grown our Community Development team from a single person to a dedicated team of nine full-time employees in 4 years.

Our designation as a Low Income Credit Union and our status as the largest Community Development Financial Institution in Virginia reflect our commitment to improving our members’ quality of life and the economic vitality of the communities we serve. Reducing the ranks of the unbanked and underbanked in our community is an ongoing challenge, and Freedom First is well-equipped to continue meeting it.

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Freedom First invites anyone who lives, works, worships, goes to school, or owns a business

in Botetourt, Craig, Franklin, Montgomery, and Roanoke counties or the cities of Roanoke,

Radford, and Salem to join Freedom First Credit Union and enjoy the benefits of membership.

Special membership provisions are also available to anyone who participates in an association

headquartered in our community charter area.

Blacksburg1204 South Main StreetVirginia Tech—Squires Student Center

Christiansburg417 North Franklin Street

Daleville1171 Roanoke Road

Roanoke5240 Valleypark Drive—Operations Center5102 Williamson Road—Crossroads2125 Colonial Avenue—Towers Shopping Center1210 Patterson Avenue—West End Center (coming soon!)Steel Dynamics, Inc. (exclusively serving the SDI workforce)

Salem1235 Electric Road1900 Electric Road—LewisGale Hospital

Vinton203 Virginia Avenue

Phone(540) 389-0244 / (866) 389-0244

Onlinewww.freedomfirst.com