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From the CEO: Achievements for 2013

Watch our annual meeting presentation and report video

May 8, 2014

Dear members:

Last month, Corporate One held its annual meeting where we reviewed our achievements for 2013 and shared our vision for the future. Our annual meeting is an exciting time for many reasons. First and foremost, it’s a great time to see so many friends and to catch up and hear about successes at our members’ credit unions. Secondly, our annual meeting is when we release our annual report. And, for us at Corporate One, this was a bright spot as we are in the fortunate position to report yet another successful year in 2013. Knowing some members were unable to join us, we are providing an electronic version of our annual audited financials for your review. In addition, we recorded our annual meeting and have posted it on our YouTube channel so you may have the opportunity to view it, which I hope you’ll do.

For Corporate One, 2013 was a year of transformation and accomplishment. Thanks to the steadfast support of our members, we continue to be one of the largest and most successful corporate credit unions in the nation. Together with your help, we accomplished all that we set out to do in 2013. Much of our work focused on successfully completing the integration between the former Southeast Corporate Federal Credit Union and Corporate One. We also made significant headway in our plans to update our operations and systems. Such integrations and updates have made for a more efficient and stronger Corporate One.

Thanks to the continued support of our members, in 2013 we achieved several notable accomplishments. These include:

  • A much more robust corporate as a result of the merger. Corporate One has more than $289.2 million in total regulatory capital, and we exceed all regulatory capital ratios and the net economic value (NEV) ratio.
  • Our correspondent, investment and liquidity solutions contributed to another year of solid earnings for Corporate One, with $4.7 million in total net income in 2013. Consistent earnings over the last four years have contributed to $44.5 million in reserves and undivided earnings (RUDE). New regulations require RUDE to be at least 0.45 percent of total regulatory capital as of October 2013. I’m proud to report Corporate One’s retained earnings ratio was 1.12 percent as of December 31, 2013. Strong earnings also contribute to a corporate’s permanent leverage ratio, which regulations require to be 4.00 percent as of October 2013. Again, Corporate One exceeds this requirement, with a permanent leverage ratio of 6.44 percent as of December 31, 2013.
  • In 2013, we again saw consistent growth in our foundational correspondent solutions, including wires, remote deposit capture and share drafts. We also rolled out Deposit Return Services, or chargebacks, to our full membership. As a result, we saw an increase in overall net service fee income from $12.4 million in 2012 to $14.4 million in 2013.
  • Net Interest Income, or NII, grew from $20.3 million in 2012 and to $22.7 million in 2013. Providing cost-effective liquidity options to credit unions is a fundamental reason for the creation of corporate credit unions. With the largest balance sheet in the corporate network and with a Line of Credit to asset ratio of 85 percent (one of the lowest in the industry), Corporate One members can rest assured we will be able to provide liquidity when needed.
  • Also contributing positively to Corporate One’s net service fee income was earnings from our two wholly owned credit union service organizations (CUSOs), Accolade Asset/Liability Advisory Services and Member Business Solutions (MBS) as well as our continued ownership of Primary Financial Company LLC (manager of SimpliCD).

As you can see, Corporate One has a lot of positive momentum behind us. Our capital position has grown in direct response to a continued growth in, and support from, our membership. Over the last fifteen years, we have experienced a significant expansion of our membership, which has transformed Corporate One from a state-charted corporate credit union owned by Ohio credit unions to a federally chartered corporate owned by credit unions in every region of the U.S. We are proud to be supported by more than 900 members in 42 states.

In closing, thank you members for your commitment to us, and for giving us the opportunity to continue to serve you. There is no doubt that without the ongoing patronage and dedication from our long-standing and newfound members, Corporate One would not be where it is today – one of the largest and most financially sound corporate credit unions in the nation.

Lee C. Butke