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From the CEO

September 22, 2014

Dear Members,

Corporate One has had a strong first half of 2014. Our financials through June show that your corporate is on a solid financial foundation. After a year of great change and integration in 2013 due to the merger, including updating many systems, we have focused on maintaining our strong financial position as well as creating and enhancing solutions that help credit unions succeed, including one awesome EMV promotion coming soon (see below).

We have continued to strengthen our corporate by well positioning you, our members, from a retained earnings and capital perspective. Through June 30, we’ve increased our reserves and undivided earnings (RUDE) from December 31, 2013 by 3.9 million to $48.3 million. We also continue to hold the most total permanent capital dollars of any corporate credit union in the nation, which includes our RUDE and $218 million in total perpetual capital. In addition, we exceed all of NCUA’s required capital ratios as of June 30, 2014 and are in great position to meet all regulations being phased in within the coming years. Further, our earnings for six months ending June 30, 2014, were $4.26 million – approximately $446,000 more than the previous year. Net interest income was approximately $538,000 greater for 2014 versus 2013. As we continued to focus on expense control, our operating expenses were approximately $333,000 less in 2014 during the same time period in 2013.

In addition to a strong financial foundation, I want to share some other successes that have taken place during the first half of 2014. Here is a quick review of some of the highlights:

  • We continue to grow our Payments Solutions offerings, and I’m proud to report we continue to grow both in volumes and revenue in ACH and our Cards solutions year over year. One of biggest areas of growth in ACH over the past months has been in business origination with 17 credit union members now serving 95 businesses. We have focused a lot on ACH outreach through live ACH Origination training events and webinars that feature the benefits of business origination. Further we have been offering a SEG/business member origination promotion of free ACH Origination accounts for Partner members through July 31, 2015. Partner members that bring on new SEG/business origination accounts will be reimbursed by Corporate One for all monthly access fees and origination transaction fees during the promotion period. Further, Corporate One provides a free, turn-key business origination package (a $500 value) to help members get started in business origination. I encourage all members to take advantage of the promotion and the complimentary resources we provide and start earning fee income for your credit union. If you’re not offering business origination, your business members are eventually going to go somewhere else for this service.

    Our Debit and Credit Cards programs continue to gain traction with six new contracts signed over the first half of 2014. We also have provided education on the new EMV cards technology and how to get your credit union EMV-prepared with new live seminars planned for the fall. Credit unions should also be on the lookout for a promotion that will be coming soon. How about if Corporate One stands ready to cover the cost to reissue your credit cards with EMV chip-enabled cards? Contact your Member Relationship Executive to learn more and get your place in line for this promotion.
     
  • Another area of focus for 2014 is ensuring that we have the liquidity solutions our members need when they need them. To that end, we’ve made several improvements, including expanding our offerings to include floating-rate term and amortizing loans as well as offering term loan specials. We have also assisted members with compliance with the NCUA’s new liquidity regulation, providing key educational opportunities and information on the Central Liquidity Facility (CLF). Further, we held several educational Lunch & Learn events recently with an emphasis on liquidity and investments. I hope you’ve been able to take advantage of these opportunities or at least you were able to leverage the expertise of our staff who has shared their knowledge of liquidity and compliance in many articles placed in the Solutions newsletters.
     
  • Our CUSO Accolade Asset/Liability Advisory Services has nearly doubled its revenue in the first half of 2014, when compared to the same time period in 2013. If you haven’t looked at Accolade as a tool to help with your balance sheet management or as a partner for investment advisory, I highly suggest you do. You won’t be disappointed and, as owners of this CUSO, you know their number one goal is not to make money, but to help you and your credit union.
     
  • Another of our CUSOs, Member Business Solutions (MBS) celebrated its 10th anniversary of helping credit unions succeed in business lending. MBS has experienced substantial growth over the past 10 years, growing from processing 15 business loans totaling $3.9 million in 2004 for a handful of credit union partners to now processing more than 10,000 loans with nearly $4 billion in loans underwritten for 80 credit unions partners. Remember, MBS is in the business of helping you make solid business loans, as well as supporting your member business loan portfolio servicing needs.

It’s an exciting time at Corporate One. I would be surprised to find any other corporate in the network that can claim as strong of a financial base as Corporate One and that provides as diverse of a product and service line at competitive prices. We continue to operate one of the most efficient corporates in the nation, and we’re working diligently to remain good stewards of your ownership investment with us. For a complete picture of our financial position, check the June 2014 financial report on our Web site. As always, if you have any comments or concerns about your corporate, call me directly. I’d love to hear from you.

Lee Butke can be reached at lbutke@corporateone.coop or at 614/825-9300.

Best,
Lee C. Butke
President/CEO