Corporate Profile Sample Pages

Profile_Final.indd 1 4/24/2009 10:47:33 AM

33

Executive Summary

Because of recent economic downturns and government stabilization requirements, credit unions will have to make some difficult decisions that will affect the way they currently do business, and as a result, drastically change the industry landscape.

State Central Credit Union is not immune to this reality, but is in a position to offer its expertise and resources to a metro Milwaukee credit union interested in combining forces to meet the challenges posed by the current economic and regulatory environment. The credit union’s expertise and resources have been acquired through the following developments:

For over 60 years, State Central Credit Union has provided high-quality products and services that members find affordable, easy to use and that meet their personal financial goals. In recent years, State Central has done a great deal to improve access to member accounts while protecting them from the rising tide of fraud and identity theft.

State Central Credit Union offers a full-service mortgage department that provides affordable and practi- cal mortgages to members, regardless if they are buying, building or refinancing a home.

Computer and other digital technologies have been implemented to improve the speed and efficiency of credit union operations, allowing State Central to remain competitive with larger financial institutions and to react quickly to changes in the business environment.

State Central has made compliance a high priority, diligently and continually developing procedures for all departments to ensure adherence to government stipulations.

Through product promotion, education efforts and a commitment to service, State Central is dedicated to building long-lasting member relationships that will help the credit union thrive well into the future.

The Board of Directors and executive management team believe that partnering with an area credit union will allow both credit unions to continually offer high-quality products and services, expand the use of technology, and fulfill compliance and regulatory requirements. Consequently, both credit unions will be able to increase membership, profitability and guarantee their future success.

The following corporate profile outlines in detail State Central’s product offerings, operations, long-term goals and steps that will be taken to guarantee a successful merger. Upon conclusion, it will be clear why State Central Credit Union is a strong candi-date for a future partnership.


15

Marketing

Advertising/PromotionsState Central Credit Union has used and continues to use a variety of advertising media to promote its products and services directly to its membership and to the greater metro Milwaukee market. These include: Statements and statement inserts (paper and electronic) Lobby displays, flyers and brochures Web site and on-line surveys Direct e-mail campaigns Special event programming Newspaper and other print media Direct mail Member referral program Radio Trade shows and employer on-site visits Internet advertising

Sales and Marketing Strategies On consumer loans, borrowers can receive a rate 1/2 percent lower than the base rate if they open a State Central checking account and keep the account active. This pricing effects all consumer loans except share secured.

Member Services offers a $25.00 incentive, directly deposited into a member’s account, for each new member referral.

Front-line staff is thoroughly trained on State Central’s products and effective cross-selling techniques. Monetary incentives are available to staff for talking about and selling member- ships, checking accounts and electronic services.

Mortgage Lending offers monetary incentives to State Central employees for mortgage referrals. Employees can receive $25.00 for every application that is submitted; $50.00 for every referred borrower who closes a State Central mortgage.

Radio has been used heavily to promote the Fresh Start Checking account to a younger age demographic.

Because of advertising through Informa and retaining servicing on mortgages sold to Fannie Mae, State Central has been able to cut mortgage rates by an 1/8 percent. Informa has provided a means for State Central to advertise affordably yet remain competitive with larger financial institutions.

State Central’s web site and mass e-mail campaigns are used to educate members and remind them of available products and services.

*IMPORTANT NOTES: APR refers to

Annual Percentage Rate. Example of APR is

based on a minimum $200,000 loan with 20% down with P&I payment of $1,215.22

amortized over 360 months. A

ll state and federal regulations and lending policie

s of

State Central apply to this o

ffer. RATES CAN CHANGE AT ANY TIME. State Central is

an equal opportunity lender.

apr*

Milwaukee W

aukesha West B

end

Open to th

e public

Open to th

e public

Open to th

e public

Open to th

e public

Open to th

e public

6.179%Buy o

r Refi!

30 year fi

xed, 0 points

or apply o

nline at

www.statecentral.c

om

Mortgage Lending:

(414) 778-1000

6.125%

5.75%APR*

Don't put off your home im

provement projects

or big ticket purchases! W

ith this low rate on a

State Central Credit Union closed end home





equity loan

equity loan

equity loan

equity loan

equity loan, those needs and wants

just became more affordable!

*IMPORTANT NOTES: APR refers to Annual Percentage Rate. APR is based

on a $5,000 loan with a maximum 80% loan-to-value and an active State Central

checking account. An active checking account is defined as having five or more

designated transactions each month. Miminum loan amount borrowed is

$5,000. To refinance an existing State Central home equity closed end loan,

borrower must increase existing principal amount by a minimum of $5,000.

Maximum loan amount borrowed is $100,000. Maximum term is 60 months.

Interest may be tax deductible; check with a tax advisor on the deductibility of

loan interest. All state and federal regulations and lending policies of State

Central apply to this offer. State Central is an equal opportunity lender.

No closing costs for





loan amounts

loan amounts

loan amounts

loan amounts

loan amounts

$50,000 or less!

$50,000 or less!

$50,000 or less!

$50,000 or less!

$50,000 or less!

Maximum term

is 5 years.

Other rates and terms

are available.

Consumer Lending

Consumer Lending

Consumer Lending

Consumer Lending

Consumer Lending

(414) 778-1000

(414) 778-1000

(414) 778-1000

(414) 778-1000

(414) 778-1000

Apply on-line at

Apply on-line at

Apply on-line at

Apply on-line at

Apply on-line at

www.statecentral.com





You won't find a home equity





loan rate better than this.






22

Financial Statements

Balance Sheetas of December 31, 2008

AssetsCash $ 1,861,006

Investments Corporate Central Credit Union 11,873,893 Available for Sale Securities, Net of Amortization and Allowance 0 NCUA Share Insurance Capitalization Deposit 532,795 Other Investments 10,000Total Investments 12,416,688

Loans to Members First Mortgage Loans 31,300,067 Auto Loans 2,510,459 All Other Loans 14,301,173Total Loans 48,111,699

Allowance for Loan Losses (186,124)

Land & Buildings (net of depreciation) 996,291

Other Fixed Assets 477,142

Other Assets 1,601,177

Total Assets $65,277,879

Liabilities and ReservesMember Savings Checking $13,477,184 Certificates 10,192,550 IRAs 2,428,318 All Other Shares/Member Deposits 25,363,979Total Member Savings 51,462,031

Accounts Payable/Other Liabilities 815,153

Reserves Regular 4,359,612 Contingency 8,641,083Total Reserves 13,000,695

Unrealized Gain/(Loss) 0

Total Liabilities & Reserves $65,277,879

Net worth: $13,000,000Net worth to total assets ratio: 19.9o (as reported by the NCUA)

Figures compiled December 2008


25

Reasons for Merger and Merger Implementation

State Central Credit Union...a Solid Choice

Why should Veteran’s Administration Credit Union consider State Central Credit Union as a potential merger partner? State Central’s Board of Directors and executive management team can bring a wealth of experience to Veteran’s Adminstration Credit Union and provide sound leadership to meet the challenges of the changing economic climate.

State Central has committed vast resources towards improving its technological capabilities and can extend these capabilities to Veteran’s Administration Credit Union. These technological improvements can allow Veteran’s Administration Credit Union a wider range of products and services to offer to members, accessible anywhere at any time.

State Central can offer Veteran’s Administration Credit Union members several options in mortgage financing through its experienced, full-service Mortgage Department, eliminating the need for Veteran’s Administration Credit Union members to look elsewhere for their mortgages. As a result, current relationships Veteran’s Ad- ministration Credit Union has with its members are solidified.

State Central has made a concerted effort to make sure all operations are compliant with state and federal regulations and works diligently to stay on top of complance and regulation changes within the industry. State Cen- tral’s expertise can help Veteran’s Administration Credit Union navigate through compliance issues and imple- ment sound procedures.

Along with technological improvements, State Central has greatly increased security of member accounts to help prevent identity theft and other forms of fraud. State Central can help Veteran’s Administration Credit Union improve security efforts, thereby protecting its membership.

Combining the resources of Veteran’s Administration Credit Union and State Central will provide both credit unions with greater opportunities to increase marketing efforts, develop quality products and services, increase membership, increase profitablility and meet the demands of the current economic climate as well as future challenges.

Like Veteran’s Administration Credit Union, State Central is committed to providing superior member service and helping members achieve their personal financial goals. Veteran’s Administration Credit Union members can expect the same quality of service from State Central as they have always received.

Merger CommitmentState Central Credit Union is committed to the success of a merger, tak-ing whatever steps necessary to meet the goals of both credit unions. The products and services of Veteran’s Administration and State Central Credit Unions will be used in such a way to provide the widest range of financial services to all members. Every feasible attempt will be made to retain as many Veteran’s Administration Credit Union staff mem-bers as possible and to utilize their talents fully in developing this new partnership. State Central Credit Union is also committed to open communication about the merger with its members and the members of Veteran’s Administration Credit Union through direct mail, direct e-mail and information on credit union websites. With careful attention and commitment, this merger will strengthen Veteran’s Administration Credit Union and State Central Credit Union and create a sound financial institution ready to meet the challenges of the future.


CORPORATE PROFILE BACK COVER

10015 West Greenfield AvenueMilwaukee, Wisconsin 53214

(414) 778-1000Fax: (414) 479-2222


April 24, 2009 10:46 AM ...Final


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