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From the CEO - 2016 Numbers: Serving our members with their funding needs

From the CEO

Dear members:

In addition to a plethora of leaves to rake and football games to watch, the arrival of fall often brings increased demands for liquidity. Fortunately, over the last few years, Corporate One has enhanced our lending products and the services we provide to better serve members across all aspects of their funding needs. To achieve our goal of being “first in funding” for our members, we’ve updated processes and simplified applications, launched a full array of flexible funding options, and increased our term-loan product offerings to include amortizing and floating-rate advances. We’re also developing new funding solutions for you that will provide additional options and make managing your liquidity even more convenient.

2016 Numbers (as of 8/31)

Collectively, Corporate One has helped our members raise approximately $524 million.

  • $94 million in external funding through SimpliCD issuance
  • 33 of our members have $422 million of SimpliCDs issued
  • 46 term loans issued
  • Aggregate term-loan volume is nearly $400 million
  • More than $30 million in security sales

And speaking of liquidity, with increased regulatory scrutiny on liquidity and liquidity planning since 2014, credit unions have done an exceptional job of establishing multiple funding sources to bolster their liquidity policies and contingency funding plans. How do we know this? We see it in the numbers! Collectively, Corporate One has helped our members raise approximately $524 million to date in 2016.

SimpliCD

While many of you are already familiar with SimpliCD as an investment option, SimpliCD also provides credit unions with an additional source of liquidity. Issuing CDs to a nationwide market of potential investors offers attractive interest rates with efficient execution. Members often experience same-day funding when accessing the brokered CD market.

  • So far this year we have helped our members raise $94 million in external funding through SimpliCD issuance. In 2015, we helped our members raise $186 million through this same program.
  • As of August 31, 33 of our members have $422 million of SimpliCD issued.

Securities

We offer ultimate flexibility in structuring products to serve your needs. For example, rotating your assets from lower-yielding investments into higher-yielding loans improves margins and ultimately provides greater value to your membership. When liquidating securities in the secondary market, it is important to consider several bids for a position. Obtaining multiple bids could unlock substantial value and increase your negotiating power with brokers. Thus, adding another broker relationship could prove very beneficial when implementing this strategy.

We have helped our members execute more than $30 million in security sales during 2016 so far.

Term Loans

Since 2013, we have been working to expand our liquidity offerings to better serve your unique needs. We have increased our term-loan offerings to include floating and amortizing term loans, and we consistently strive to offer term-loan specials to help fund your assets at a lower cost. With the expanded offerings and more competitive rates, we continue to help our members bridge the gap between mismatches in deposits and asset growth.

  • In 2016, we have issued 46 term loans.
  • The aggregate term loan volume is nearly $400 million.

While loan-to-share ratios continue to increase, we remain committed to being your preferred liquidity provider and finding solutions that best serve your individual needs. If we can help you evaluate your sources of liquidity or you have questions about liquidity offerings through Corporate One, please contact Perry Jones, VP Portfolio Manager, at 800/432-0203, ext. 4030, or your senior investment services representative.

For more information on our funding options, including current loan specials, visit our liquidity rates page.

Best,
Lee C. Butke
President/CEO