Southeast, Corporate One Merger Plugged on Video
The planned merger of Southeast Corporate into Ohio’s Corporate One is getting the viral treatment this month as a new Q&A video has been released as an educational tool to familiarize CUs with consolidation benefits.
The 10-minute video posted on the Southeast Corporate website features an interview of the top CEOs of both corporates, Brad Miller, president of Southeast in Tallahassee, Fla., and Lee Butke, president of Corporate One in Columbus, explaining reasons for the merger and future prospects.
Serving as moderator for the Q&A taping is Michael Bridges, vice president of marketing/communications for the League of Southeastern Credit Unions.
A joint statement from the corporates said the video offers “a deeper look” into the proposed merger announced last month.
In the video, Miller explains that the 400-member Southeast decided on the merger route months ago as the optimum course after conducting a “very extensive evaluation process looking at all the corporates” as potential partners.
In August, Southeast said it did not reach an $80 million capitalization goal under NCUA corporate regulations and would seek a merger partner.
In his comments, Miller cites the large number of common areas shared by the two corporates – including similar core system providers, draft capture, cash servicing and ACH settlement –
among the reasons for choosing the 775-member Corporate One.
In his remarks, Butke says he too is “pleased at how well the two corporates align with each other in areas such as member commitment, synergy and infrastructure.”
Butke said Southeast “built their due diligence around, number one, protection of capital, which we think is paramount within this industry.”
The Corporate One head said also under the merger “we can provide a whole new level of protection that wasn’t available before. Our strong reserves and undivided earnings base totals more than $40 million, which goes a long way to protect members’ capital.”
Butke also said of “the long-term value” of the merger, “Corporate One not only meets certain ratios established by NCUA today, but has the ability to meet key metrics for the long term. Already, the corporate has a permanent leverage ratio of more than 5% – a level not required until 2013.”
The two corporates said last month they hoped the merger can win final NCUA approval within 90 days though it could take 180 days.