NASHVILLE, Tenn. (7/8/09)--Volunteer Corporate CU (VolCorp) recently launched an educational campaign, “Strength. Stability. Service. Today and Beyond,” to educate its member credit unions about how the corporate has stayed financially stable amidst a struggling economy. As a part of the campaign, VolCorp has posted two articles on its website, “VolCorp--Today and Beyond,” and “It’s a Balancing Act.” Both were written by VolCorp CEO Rick Veach. “It is critical each member realizes that VolCorp has the financial resources to withstand the current economic turmoil and continue indefinitely into the future,” Veach said. “We have suffered losses, as almost all financial institutions have, primarily through our capital accounts at U.S. Central. VolCorp, however, has adequate retained earnings to absorb these losses without affecting its members’ capital accounts.” In the articles, Veach emphasized VolCorp’s conservative investment philosophy. According to Veach, VolCorp:
* Only purchases paper with a minimum 90% owner occupancy rate; * Only purchases bonds with loans originated prior to the housing crisis, with an average FICO score of at least 720 and a loan-to-value less than 70%; * Has securities classified as available-for-sale (AFS), instead of held-to-maturity. AFS provides more transparency for members, VolCorp said; * Has a marketable securities portfolio of about $300 million, with $6 million of unrealized losses.
VolCorp also has upgraded its hardware and software applications to offer members more efficient and up-to-date services, Veach said. “We are now in the process of installing a new core data processing system and should be live on Jan. 4,” he added. “More important, we have accomplished all of this without increases in member fees or reducing rates paid to members.” VolCorp, Nashville, Tenn., has more than $1.3 billion in assets and serves 266 credit unions.