Mid-States/INDICORP merger

NAPERVILLE, Ill. - Last year's merger of INDICORP and Mid-States is having direct benefits for the new corporate's member CUs. Mid-States announced that it has increased yields and reduced prices on some services that results in an estimated $5 million savings for its members. "Pre-merger, over $3 million in annual benefits were identified by management and we told our members that these were conservative estimates," said Mid-States CEO Don Finn. "We figured that we could return more than $3 million per year, but the $5 million mark is really fantastic." Because of account restructuring, 100% of all overnight/daily balances earn higher yields. Compensating balances and low yielding settlement accounts have been eliminated. "This not only returns an additional $4.4 million to members, but it greatly simplifies member settlement operations, and time is also money," said Mid-States President Steve Tolen. The corporate said the merger has also allowed it to reduce item processing fees at a reduction of $370,000 per year. Mid-States has eliminated its line of credit fee, lowered check collection fees, reduced the Monthly Electronic Money Position Fee by 80% and lowered other service fees totaling an estimated $750,000 annual reduction in fees. Another key aspect of the merger was technology. Mid-States has brought all its data processing in-house and all INDICORP/Mid-States accounts will be merged on May 30, 2000. The Member Electronic Connection is being redesigned and renamed e-FACTS. The corporate also plans on revamping its imaging capabilities to help natural person CUs. "While our members can currently receive share draft images over the Internet, by the end of this year we will enable our members members to access images in a secured environment," said Tolen.