The board of directors of Southeast Corporate Federal Credit Union has approved a new business plan for serving its membership of approximately 400 credit unions, which includes a recapitalization effort focused on continuity of services, preservation and protection of member capital, long-term sustainable value to members, and compliance with the new NCUA Part 704 requirements for corporates as they take effect over the next few years.
“We have begun holding webinars with our members this month and will schedule town hall meetings in early 2011,” said Brad Miller, president/CEO of Southeast Corporate. “These discussions will provide an opportunity to lay out plans and obtain members’ input for Southeast’s next steps.”
Miller says the plan calls for continuing to work with other corporates and industry partners to consolidate back-office operations and processes to lower costs, increase efficiencies, and provide best of breed products and services. The plan also includes moving from a current 64 percent operating coverage ratio (non-interest income as a percent of operating costs) to 90 percent within three years. “This greatly reduces our reliance on investment income and means less risk to member capital,” he said.
“We’re confident this plan will allow Southeast Corporate to continue providing member-owners with the high quality and competitively priced products and services they have relied on from us for over the past three decades,” said Miller. “We’re eager to hear from members. One thing is clear: our strength and future ability to meet their needs depends on their support.”