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WEST PALM BEACH, Fla. – There’s been a flurry of corporates announcing record asset levels as credit union members continue their flight to safety, which indirectly bolsters corporate assets. Here are some of the record asset levels corporates are reporting: * Northwest Corporate Credit Union said its assets hit a record $1.3 billion last month. * U.S. Central Credit Union’s total assets set another record, reaching $41.4 billion on March 3 – eclipsing its recent record total asset level of $38.2 billion set on Feb. 14, 2003. * VolCorp said its assets reached $1.21 billion at the end of February, 2003, a new high for the corporate and a 24% increase since year end. “We attribute this growth to the very attractive interest rates we are currently paying to our members and our success in adding members outside of Tennessee,” according to Bruce Fahnestock, President and CEO for Volunteer Corporate. * Corporate Central Credit Union said that it reached a record $2 billion in February. Total investments in the corporate grew an astounding $450 million in February, and member loan demand was up 25% over the previous month. “A combination of deposit inflows to credit unions and strong marketing efforts has fueled this growth,” said Mark Schroeder, Corporate Central’s President and CEO. So does anything change balance sheet wise when corporates experience such high asset levels? Typical of corporates, the answer is a resounding no. Corporate say they don’t take any different approaches because they always have to be ready when the tide turns. “While record asset levels are significant, experience from as recent as 1994-1995 reminds us that liquidity conditions can turn very quickly. Since U.S. Central also is a key `provider’ of liquidity, we generally do not take an overly aggressive posture when investing this volume of short-term deposits,” said David Dickens, senior vice president, asset/liability management, for U.S. Central. Northwest Corporate CU President/CEO Kathy Garner echoed those sentiments. “We just do more investing in the same things. We’re buying the same instruments,” said Garner, who noted that liquidity usually flows out starting in February, but not this year. “We normally increase in December and January and then we start to see it outflow. We’re not seeing it outflow. That’s unexpected if you look at normal flows,” said Garner. [email protected]

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