For Many Former WesCorp CUs, New Motto Is: 'Go East, Young Man'
CHATSWORTH, Calif.-Factors that are hindering United Resources' capital offering are the performance of some of the other corporates and the fact that at least one is not requiring any capital investment to use its services (CU Journal, Aug. 1).
Dale Verdano, CEO of the $130-million Matadors Community CU, said his CU has opted to work with a corporate that does not require a capital investment.
"We have investigated various options, including a correspondent bank arrangement and the Federal Reserve. After detailed analysis of all options we have elected to use Corporate America to do our item processing, wire transfers and provide a credit line. They have demonstrated high integrity and sound management."
MCCU had previously been a member of WesCorp, now Western Bridge Corporate CU, which is now attempting to recapitalize and become United Resources CU.
Thomas Bonds, CEO of Corporate America CU in Birmingham, Ala., told Credit Union Journal his corporate has been receiving numerous inquiries from CUs in Western regions of the U.S. "I have been spending an inordinate amount of time out West and we are getting a really good reception from those good folks out there."
Lee Butke, CEO of Corporate One FCU in Columbus, Ohio, said many CUs in the West are also doing due diligence on Corporate One. "They are comparing and contrasting our existing business model against some other [proposed] business models. Our model is here today and is producing results today. It is not a spreadsheet or a white paper, it's the real deal."