From The Desk of the CEO

How Are We Doing Compared to the Plan?

For those of you who capitalized Missouri Corporate Credit Union (MCCU) you might be interested in how we are performing against the Strategic Plan approved for release by the NCUA for the re-capitalization process. For credit unions interested in joining MCCU, I’m certain you are curious about how well we are doing and what the future holds.

Two major areas hold our attention at the present time -- meeting the NCUA capital standards and disconnecting from U.S. Central Bridge. Regarding the NCUA capital standards, the most critical target facing us is compliance with the 45 bp retained earnings requirement that must be met by September 30, 2013. The Strategic Plan approved for release by the NCUA in May 2011 and used for the re-capitalization effort, projected a retained earnings level of 21 bp in September 2011. In September 2011, our retained earnings ratio was 19 bp and we closed the year at 21 bp, very close to projections.

Our current budget projects a retained earnings ratio of 47.5 bp in September 2013. The NCUA also requires corporates to have a Leverage Ratio of 4.0 % and a Total Risk-Based Capital Ratio of 8.0% by September 30, 2013. Our projections indicate a Leverage Ratio of 7.6% and a Total Risk-Based Capital Ratio of 64.2% by September 30, 2013.

Regarding disconnecting from U.S. Central Bridge, there are four payment functions that must be replaced: ACH processing, auto settlement, international services and bill pay. Here’s the status of each……

ACH Processing – MCCU has signed a letter of commitment to begin using the ACH processing product offered by Lending Tools. We hope to convert to the Lending Tools product before the close of the first quarter 2012.
Auto Settlement -- Lending Tools recently announced a partnership with Viewpoint to provide auto settlement. We don’t have the details yet, but I’m optimistic we can keep auto settlement in place. If not, we’ll convert to ACH.
International Services -- It’s our understanding Lending Tools is working on a connection to Travel Ex via their ACH product. For credit unions that convert to the new Lending Tools ACH product, you’ll be able to electronically enter international transactions via the ACH software. If not, the transactions can be phoned in.
Bill Pay -- U.S. Central Bridge’s bill pay product (called “eCom”), was sold to the Co-Op Network. It’s our understanding this will be a seamless transition from the U.S. Central Bridge product to the Co-Op product. Credit unions using the U.S. Central Bridge product have already been contacted by Co-Op. Don’t confuse this with MCCU’s other bill pay product called “MyCU.” MyCU remains unaffected.

To those credit unions that provided capital that well exceeded our goal, thank you! To those that are interested in joining a vibrant, successful, safe corporate credit union, please contact Michelle Thompson at mthompson@mocorpcu.coop for more information.

From The Desk of the CEO

Regards,