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Southeast Corporate Merger into Corporate One to be Finalized

Combined entity will have more than $375 million in total regulatory capital

June 13, 2012 -- Ohio-based Corporate One Federal Credit Union and Florida-based Southeast Corporate Federal Credit Union announced today that the last hurdle to a successful merger has now been achieved. This final hurdle, raising sufficient perpetual contributed capital (PCC) to effectuate a merger with Corporate One, was reached today.

The capital campaign was a success when Southeast members’ total PCC capital investments reached $68 million, which when combined with Corporate One’s present capital position creates an entity with more than $375 million in total regulatory capital, of which $213 million is in PCC. Corporate One continues to have the most total regulatory capital dollars of any corporate credit union with one of the strongest reserves and undivided earnings (RUDE) ratios.

“The goals of this merger were to preserve Southeast members’ capital, provide them with continuity of services and protect and enhance the value of the franchise of Southeast Corporate, a franchise that remains valuable thanks to the continuing support of its members,” said Lee Butke, Corporate One’s president and CEO. “With a successful capital raise behind us, we can now focus on providing those solutions that our members need with the benefits that they deserve.”

Jerry Guy, president and CEO of KEMBA Financial Credit Union, and Corporate One’s board chairman, echoes Mr. Butke’s comments. "Our first obligation was to protect the capital of Corporate One’s loyal membership, and maintain our exceptionally strong capital position. We also wanted to see the creation of a solid business model result from the combined resources of the merger entity, and we wanted to do what was best for the membership of Southeast Corporate. Furthermore, we wanted to protect the credit union system from another black eye caused by a corporate credit union failure and the resulting loss of capital that would leave the credit union system. I’m proud to say we’ve accomplished these goals with this merger.”

With the Southeast capital offering now closed, and with Southeast’s membership having voted to support the merger last month, the merger will become effective on July 1, 2012 at 12:01 a.m. Corporate One will shifts its focus on integrations of systems and product solutions as quickly as can be done without causing disruption to its members.