From the CEO
December 30, 2011
Dear Members:
2011 was a defining year for the corporate credit union industry, and for Corporate One. While much of the spotlight throughout the last year was on our response to the changes outlined in Reg. 704 and our plan to comply with the new regulations’ capital requirements, we also had to continue to run our corporate, and do so in a way that provided value and support to you, our members.
Overall, 2011 proved to be a strong year financially for your corporate. We continue to operate under a strong business model, with profitable solutions and efficient operations. As of Nov. 30, 2011, our net income for the year is $2.39 million, supported by strong core earnings of more than $5.24 million. While we continued to see some other-than-temporary impairment losses in 2011, these have decreased significantly year over year by over 60%, and we feel confident such losses will continue to improve as the market recovers.
There is no doubt that the highlight of 2011 was completing a successful re-commitment campaign. Not only did our campaign solidify our ability to continue to serve you well into the future, but it positioned Corporate One as one of the strongest corporate credit unions in the country. Thanks to your support, Corporate One currently holds more regulatory capital than any other corporate, with more than $264 million as of November 30, 2011, which is simply outstanding. Additionally, we gained 65 new members in 2011. Words cannot express the gratitude all of us at Corporate One have for the support and trust of our membership.
In 2011, our mission to provide high quality financial solutions to our members continued, and Corporate One introduced and improved several key solutions, including:
- Expanding our investment offerings to include the Federated Government Ultrashort Duration Fund (FGUSX)
- Partnering to offer a new investment option in the National Credit Union Foundation’s Community Investment Fund (CIF), providing for free safekeeping and the ability for credit unions to choose products, among other benefits. Proudly, we’ve already partnered with six state/regional credit union leagues to offer our CIF option to their members.
- Completing the year-long process of transitioning our domestic and international wire platforms to a single, streamlined platform, OneWire, that is more efficient and includes enhanced security and reporting features.
In addition to providing support on our other solutions, all of which performed strong, we were excited to make these enhancements to our product offerings so that you can serve your members better, generate more revenue and run efficient credit unions.
All of this positive momentum has us looking optimistically to 2012. The potential merger with Southeast Corporate continues to unfold, presenting a great opportunity for Corporate One to grow and become a financially stronger and more efficient operation with added solutions to offer our members. Further, we will continue our focus on growing reserves and undivided earnings (RUDE) and ensuring that the solutions and service we provide to you continue to help you run strong credit unions.
I look forward to continuing our track record of success in 2012. On behalf of all of us at Corporate One, thank you for your continued support and all the best to you in the New Year.
Best,
Lee C. Butke
Lee Butke can be reached at 866/MyCorp1, ext. 9300 or at lbutke@corporateone.coop.