January 6, 2012

Letters of Support Regarding Merger with Corporate One

As we continue to work diligently toward our merger with Corporate One Federal Credit Union, we are pleased to share with you some of the letters of encouragement and support we’ve received from our members and industry leaders.
 
Tom Baldwin, EVP/CFO, Space Coast Credit Union, Melbourne, FL
Tom Baldwin, EVP/CFO, Space Coast Credit Union, Melbourne, FL
“After discussion with the leaders of Southeast Corporate and Corporate One, it became evident to me that this merger, which will require us all to convert our existing Member Capital Shares (MCS) in Southeast to Corporate One in the form of PCC is the only way to protect our remaining investment in Southeast Corporate. Space Coast did not support the original plan to recapitalize Southeast Corporate on its own; however, Corporate One brings almost $40 million in retained earnings and significant capital from their existing membership as a buffer against any future losses Southeast may incur on its investment portfolio. Their business plan, including well-diversified income streams, should ensure success in the future even under the new NCUA regulations. We can not risk liquidation of Southeast and the almost certain write-off of most of our capital investment. I encourage all Southeast members to make their capital commitment as soon as possible so that this merger can proceed without delay.”
 
Jim Mitchell, President/CEO, Army Aviation Center FCU, Daleville, AL
“I just wanted to take a few minutes to thank Southeast Corporate for all of the extensive research that was done in support of the proposed merger between Southeast Corporate and Corporate One. As someone who has used the services of Southeast Corporate for more than thirty years, it was somewhat of a bitter sweet moment realizing that Southeast Corporate would be no more. On the other hand, I can fully concur with my many colleagues that such a consolidation is the right decision and is in the best interest of its member credit unions. This merger will not only preserve our membership capital shares, but will also build the foundation for a much stronger corporate credit union structure.
 
“The management and board of Army Aviation Center FCU unanimously support this decision and have agreed to convert our membership capital in Southeast Corporate to perpetual capital in Corporate One. I look forward to receiving the same exemplary service through Corporate One that I have enjoyed from Southeast Corporate over the past thirty years. Perhaps maybe even over the next thirty years.”
 
You can view more letters of support by visiting the Member-Owner Info Center area of our website at www.secorp.org or by clicking here. 

Update to NCUA Wind Down of Payments Operations at U.S. Central

On Thursday, December 22, the National Credit Union Administration (NCUA) announced that they have chosen to unwind the payments operations area (APEX-ACH and national settlement) of U.S. Central Federal Credit Union, the wholesale credit union utilized by the corporate credit union network. While we are disappointed that a solution to continue the payments services could not be reached, it is not altogether unexpected. Southeast Corporate and Corporate One, along with several other corporates have been active participants in the discussions related to the U.S. Central payments services, and we are prepared to move forward now that the NCUA has made their decision to wind down these services.
 
To ensure our members have continuity of these essential payment offerings, Southeast and Corporate One have been formulating available options should operations be discontinued at U.S. Central. Our plans have included narrowing a field of candidates and performing stringent due diligence on those organizations. We are focused on choosing partners that will provide reliable, secure and competitive services to our members, while causing minimal disruption to your staff and your own members. While we have yet to be advised when the transition away from U.S. Central's services will occur, we are confident we will be ready to provide these services without interruption to our members.
 
We will continue to update our members on the process of winding down U.S. Central's payments services. In the meantime, please contact our Member Services area at 800-342-0203, Option 1, or your Member Relationship Manager (MRM) with questions or concerns you may have regarding your APEX-ACH or national settlement services.

Now Available! Virtual Town Hall Presentation of Southeast Corporate, Corporate One Merger

Southeast Corporate and Corporate One have created a condensed version of their recent town hall meeting series regarding our proposed merger. If you were unable to attend one of their recent town hall meetings or would like to share this important information with your staff and/or Boards of Directors, we invite you to view our “Proposed Merger of Southeast Corporate and Corporate One” town hall presentation. To view the presentation, click here, or visit the Education tab of our website at www.secorp.org and select Training.
 
This presentation should be viewed and used in consideration of the Non-Binding Letter of Commitment recently mailed to members. For additional information, contact your Member Relationship Manager (MRM) or Financial Strategist. 

Southeast’s Accolade CUSO Ends Year with Over $1 Billion in Assets under Management

Accolade Investment Advisory, under the direction of its president, Peter Gibson, continued to experience appreciable growth during 2011, ending the year with nearly $1.2 billion in assets under management (AUM), a significant increase from the $900 million in AUM at the end of 2010.
 
According to Gibson, the increase comes as a result of “credit unions increasingly recognizing the value in partnering with an unbiased advisor to help guide their portfolios through the constantly changing world of complex fixed income instruments.”

• Despite the challenges of ongoing economic turmoil and the low rate environment, Accolade was able to provide a high level of service to its client institutions during the year as well as offer significant cost and time savings.
  During 2011, Accolade transacted nearly $800 million in trades for its client credit unions, an increase of almost 30 percent from 2010.
• Accolade continues to provide a more price efficient alternative for individual securities transactions by accessing the firms that own and originate the securities as opposed to using regional broker dealers. By actively seeking this best execution, Accolade conservatively estimates that it has saved its client credit unions in excess of $1,000,000 during the year.

Accolade Investment Advisory, LLC, is Southeast Corporate’s wholly owned Investment Advisory CUSO. The company is an SEC-registered investment advisor. Its primary services are in the areas of portfolio management, investment portfolio strategy, and trade execution. In support of those services, Accolade also offers asset-liability management services, investment accounting, security safekeeping, regulatory and board reporting, and policy development.

For more information about Accolade, please contact Peter Gibson at 866-537-7302 (pgibson@accoladeadvisory.com) or Kathy Fisher at 850-701-4071 (kfisher@accoladeadvisory.com).

Martin Luther King, Jr. Holiday Cash Ordering Schedule

Due to the Federal Reserve and Southeast Corporate being closed in observance of Martin Luther King, Jr. holiday on Monday, January 16, 2012, you may need to change your cash ordering.
 
If you regularly order cash on Thursday, January 12, 2012, for Monday, January 16, 2012 delivery, you will receive your cash on Tuesday, January 17, 2012.
 
If you regularly order cash on Friday, January 13, 2012, for Tuesday, January 17, 2012 delivery, you will need to place your order on Thursday, January 12, 2012, for delivery on Tuesday, January 17, 2012.
 
If you regularly order cash on Monday, January 16, 2012, for Wednesday, January 18, 2012 delivery, you will need to place your order on Friday, January 13, 2012, for delivery on Wednesday, January 18, 2012.
 
If you regularly order cash on Tuesday for Thursday delivery, or Wednesday for Friday delivery, there is no change to your schedule.
 
Due to the varying arrangements between financial institutions and their armored carriers, please confirm these delivery dates with your armored carrier representative.
 
If you have any questions, please contact Member Services at 800-342-0203, Option 1.

Southeast Corporate and EastPay Team Up to Offer Final Session in their Exception Processing Webinar Series

Southeast Corporate is hosting the final session in the three-part Exception Processing webinar series presented by EastPay’s Director of Education, Kevin Olsen, AAP. Help prepare for your upcoming AAP exam or earn continuing education credits by attending this final session titled, "Understanding Reclamations: Government & Commercial Payments."
 
This webinar will explore government ACH reclamation process and provide some tips on calculating potential liability and mitigating losses. Reclamations from the Federal Government for benefit payments pose considerable liability and are among the most common sources of charge-offs for RDFIs. Timely and accurate handling of these payments is a critical component for RDFIs to limit their liability and prevent loss.
 
The webinar will be offered on January 26, 2012, and through this unique partnership, we are able to make the training available to you at a reduced cost of $50 per credit union. For more information or to register, click here.

Southeast's Charles Harkness Receives ECCHO's National Check Payments Certification

Charles Harkness, VP/Operations Project Management, recently received certification as a National Check Professional (NCP) by the Electronic Check Clearing House Organization, (ECCHO). Individuals holding the designation of NCP have successfully proven a certain level of understanding of the current check payments landscape. Through the certification process, NCPs demonstrate a working knowledge of every significant aspect of the new check payment system including products and operations, relevant rules and laws that govern checks, industry standards and fraud and risk mitigation considerations. By having a NCP on staff at Southeast, members can be assured that our staff maintains an expertise in payments processing technologies, industry standards and regulations, and delivering the highest quality product possible to our members.  

Upcoming Webinars & Training:

Exception Processing/Understanding Reclamations: Government & Commercial Payments – January 26, 2012, 2:00 p.m. ET
 
APEX-ACH Risk Mitigation – February 9, 2012, 9:30-10:30 a.m. ET
 
For more information and to register, click here.

If other staff at your credit union would like to receive updates, email us at communications@secorp.org .