By: Lee Butke, President/CEO
Corporate One started 2012 with a bang. First, our board of directors, along with the Southeast Corporate board of directors kicked-off the year by signing a Definitive Merger Agreement, which is a major milestone in the merger process. Secondly, with the National Credit Union Administration’s (NCUA) announcement about the wind-down U.S. Central Federal Credit Union, the wholesale credit union utilized by the corporate credit union network, we today announced Fundtech as our new ACH partner. With Fundtech, we will be able to provide enhanced ACH services to our members as well as lower pricing.
Signing the Definitive Merger Agreement with Southeast Corporate is an important step in the merger process, as it is this Agreement which governs the terms and conditions that binds the organizations together. I’m pleased to say that the further we get into this process; the clearer it becomes this merger is a natural fit. During the process of creating the Agreement, we confirmed this merger is going to bring great efficiencies to both our organizations. And, running an efficient, lean corporate that takes advantage of aggregating volumes will enable Corporate One to keep costs down for you and drive revenue, all of which helps us retain and gain members, and protect your capital.
As I’ve stated before, Corporate One’s plan is to maintain a “well capitalized” status as a merged entity, as well as maintain the strong positions we have regarding our reserves and undivided earnings, and our permanent leverage, Tier 1 risk-based capital and total risk-based capital ratios. Further, we will continue to meet all Net Economic Value (NEV) ratios and Weighted Average Life (WAL) tests in base and stress case scenarios. Our goal is to be nothing short of a solidly profitable and well capitalized corporate. As a result, this merger will enhance the value of your investment in us and ensure our strength over the long-term.
With the signing of the Definitive Merger Agreement, the next step involves submitting our formal application to the NCUA and the NCUA Board’s approval. Once the application is approved by the NCUA, the official capital subscription process and the member voting will begin for Southeast’s membership.
In other news, the NCUA announced earlier this month they have chosen to unwind the payments operations area (APEX-ACH and national settlement) of U.S. Central. Corporate One was an active participant in the discussions and negotiations related to the U.S. Central payments services. However, simultaneous to our discussions with U.S. Central, Corporate One was also actively pursuing other options and performing stringent due diligence on alternative ACH providers. After an extensive and thorough search, we are very pleased to have chosen Fundtech as our new ACH system provider.
As we move forward on these important issues, we will be sure to communicate major milestones to you so you can remain informed and confident in our next steps. Should you have any questions, please do not hesitate to contact me at email@example.com or at 866/MyCorp1, ext. 9300.