From the CEO
Lee Butke, President/ CEO, Corporate One Federal Credit Union
January 31, 2011
Corporate One kicked off the New Year with a bang, hosting 16 events across Ohio, Indiana, Illinois, Kentucky, New York and West Virginia to talk about our strong business plan and how you, our members, can continue to support us under the National Credit Union Administration’s (NCUA) updated Rules and Regulations, Part 704. The town halls provided me and members of our senior management team a perfect forum to review the capital offering we sent to members in late December, and to hear what questions you have about the changes made to the corporate credit union capital structure.
In addition to these events, members of Corporate One’s senior management team and I had the opportunity to present at several chapter meetings as well. These meetings provided us with additional opportunities to speak with credit unions and directors around Ohio about our capital offering, and we look to doing more of these meetings in the future. Overall, we spoke to nearly 500 members from approximately 490 credit unions throughout the first three weeks in January, which is outstanding. We also made a concerted effort to call all of our Partner members to ensure they received the offering packet and reviewed its contents. I want to thank those of you who attended these events and those of you with whom we spoke over the phone. Your thoughtful insights and continued support are what make your corporate one of the strongest in the country.
The ultimate goal for Corporate One is to become a well-capitalized corporate under the NCUA’s updated regulations. We are pleased to be one of the only corporates to not lose any of our members’ capital shares, and, as a result, be in the unique position of not requiring any additional capital from our current Partner members. We are also pleased that our financial position has made it possible for us to make available a special 5-year term capital certificate at a great rate. As outlined in the offering packets sent to all CEO/Managers at member institutions/organizations (as of Dec. 28, 2010) at the end of Dec., members who fully convert their existing capital to the newly approved Perpetual Contributed Capital (PCC) or capitalize with us have the opportunity to purchase the 5-year Non-Contributed Capital Account (NCA). This is a summary, full details, including terms and conditions, can be found in the capital offering memorandum.
The NCA is our way of thanking our members for their support. It is a voluntary, yet limited offering and will be fulfilled on a first-come, first-served basis (closing April 29, 2011). The response to the NCA has been positive as has the overall response to our capital offering. We are excited to report that we have already received several commitments, and urge those of you interested in the NCA to act sooner rather than later to ensure your purchase.
I understand the change to the corporate capital structure under Reg. 704 requires important consideration by both your respective credit union management teams and Boards of Directors. In addition to hosting the aforementioned events, we are taking the following steps to ensure you have information you need to make the best decision for your credit union:
- First, there was a CD in the offering packet mailed to you that includes a video presentation designed to help introduce and address the capital offering with your Directors. We will be placing this presentation on the Web so interested members can request the link should you want or need to distribute it to your board.
- Secondly, in the coming days, I will be forwarding details about an on-demand town hall presentation, which will review the capital offering content reviewed at our town halls.
- Thirdly, we will be looking at future event opportunities where we can be available to you, including CUNA’s Governmental Affairs Conference (GAC) in Feb., to ensure you have ongoing access to me and other Corporate One staff.
- Finally, you are welcome to contact Corporate One directly should you have questions or concerns that you feel haven’t been addressed in our materials. Your Marketing Representative can assist you with basic information, including what your credit union needs to do to convert or capitalize with us. You can contact me or members of our senior management team should you have more in-depth questions about the offering or need someone to speak with your Directors. Please don’t hesitate to contact us at 866/MyCorp1.
Your continued support of Corporate One is greatly appreciated. We look forward to continuing to serve you well into the future. As always, feel free to contact me directly at lbutke@corporateone.coop or at ext. 9300 with any questions.
Best,
Lee C. Butke
President/CEO