Nov. 21, 2011-- Southeast Corporate Federal Credit Union announced today that member response from their series of Town Hall meetings has been very positive. During the eight Town Halls that ended last week in Jacksonville, Florida and held throughout Mississippi, Florida and Alabama, Brad Miller, Southeast Corporate’s president and CEO and Lee Butke, president and CEO of Corporate One presented the vision for the newly combined entity as one that establishes the strongest corporate in the nation and more importantly, a corporate that can effectively and efficiently serve members now, and well into the future.
As discussed during the Town Halls, the merged organization will have a very strong capital position not only in terms of the ratios but in terms of actual dollars. It will be a “well” (not marginally) capitalized institution meeting the required permanent leverage ratios today and exceeding all long-term capital ratios under the new rule. It also provides for continuity of services for Southeast’s members based on the synergies of the two corporates’ products and services as well as system platforms while continuing to build upon the value that Southeast’s members have created over the past three decades.
Brad Miller, president/CEO of Southeast Corporate said “that he was very encouraged by the level of participation and support during the meetings.” “It’s clear that our merger with Corporate One is the best and only remaining option to protect our members’ $63 million in capital while preserving the franchise value built over the past thirty years of dedicated service to credit unions.”
With the most capital of any corporate, Lee Butke, President/CEO said that “Corporate One is in the best position to help preserve member capital while continuing to provide the same products/services along with additional products not currently offered by Southeast as well as a combined balance sheet of sufficient size to provide much needed liquidity to the system.” “The number one question at the Town Halls was about our ability to preserve the members’ capital,” said Butke. “What I heard from the attendees is a huge sense of relief that a merger between Southeast Corporate and Corporate One will preserve the members’ existing capital, but also provide real value to them for their ownership investment.”
Butke and Miller said the merger plan and thorough due diligence process is continuing. “We expect to move through the process as quickly and diligently as possible,” said Miller. “We have completed the regional Town Hall meetings and are now focusing on functions and processes such as system integration and ensuring service continuity to the members. Once all that is completed, we will finalize our merger application to the NCUA.”
Letters of Support Received from Industry Leaders regarding the merger include:
From Dennis Dollar, principal partner of Dollar Associates, LLC
“…from my fairly unique position as a credit union consultant, a former member of Southeast Corporate and one with regulatory experience providing me with a solid working knowledge of the corporate system… I commend you on your decision and believe this is an outstanding merger plan.”
From Tom Dorety, president and CEO of Suncoast Schools FCU
“We appreciate the dedication and diligence of Southeast Corporate’s Board and management in selecting a merger partner that we believe is truly in the members’ best interest.”
From Tim McMurry, president and CEO of PowerNet Credit Union
“As Chairman of the Board, I’m right there with you and the entire management and staff in our pursuit of a successful merger with Corporate One.”
From Raffael Crockett, president and CEO of Brightstar Credit Union “I believe the selection to join forces with Corporate One Federal Credit Union will help to protect our member capital shares remaining with Southeast… Corporate One’s capital structure is strong and revered.”
From Laurin Avara, president and CEO of Navigator Credit Union
“Navigator credit union supports the proposed merger, and we look forward to continuing to enjoy the great relationships we have with the same Southeast staff on a day-to day basis.”
From Tim Baldwin, president of San Antonio Citizens FCU
“I want you to know that we are totally in favor of the merger arrangement….We look forward to pledging our existing Member Capital Shares to Perpetual Contributed Capital at Corporate One.”
About Southeast Corporate:
Southeast Corporate Federal Credit Union is a corporate credit union serving more than 400 credit unions throughout the southeast and nationally from offices in Tallahassee and Jacksonville. With assets under management of approximately $3 billion, the Corporate was chartered in 1976. In addition to providing liquidity, investments, payment services and other back-office services, Southeast Corporate is the sole owner of Accolade Investment Advisory LLC, which offers portfolio management and reporting solutions for credit unions and Member Business Solutions, LLC, which assists credit unions in serving the financial needs of small-business members. Southeast Corporate also is a co-owner of Corporate Synergies, LLC, a CUSO that provides data processing and hosting services to its member/ owners. For more information about Southeast Corporate, visit www.secorp.org.
About Corporate One:
Corporate One Federal Credit Union is a leading wholesale financial services provider to more than 780 of America’s credit unions. With more than $4.7 billion in assets under management, Corporate One offers correspondent services including ATM/debit and credit cards, share draft imaging, depository and electronic payment services and investments to credit unions across the United States. Corporate One also developed and manages Alliance One, one of the nation’s largest non-network-specific ATM selective-surcharging groups. For more information, visit www.corporateone.coop.