Three Additional Corporates Invest in Primary Financial –
CUSO Now Owned by 100% of Nation's Corporates

1/5/2004

COLUMBUS, IN – Ushering in a new year, and a new era of cooperation for the corporate credit union network, three additional corporates have invested in Primary Financial Company LLC (Primary Financial). Primary Financial, a credit union service organization (CUSO) that operates the SimpliCD program, was purchased earlier this year from Corporate One Federal Credit Union by a consortium of corporate credit unions. Corporate One had owned and operated the CUSO since 1996. The newest investors in Primary Financial include Corporate America Credit Union, based in Irondale, AL; Midwest Corporate Federal Credit Union, based in Bismarck, ND; and Eastern Corporate Federal Credit Union (EasCorp), based in Woburn, MA. Primary Financial is now owned by 100 percent of the nation’s corporate credit unions.

The SimpliCD program invests credit union funds in federally insured CDs from nationwide issuers, monitoring all transactions and paying one monthly interest distribution for the entire portfolio. The key attraction for credit unions is convenience – SimpliCD monitors each account in the member’s portfolio, providing comprehensive reports of all holdings, settlement dates, rates, and monthly interest. SimpliCD also helps credit unions generate funds through CD issuance. Currently, SimpliCD outstandings are approximately $3.2 billion.

“We’ve offered SimpliCD to our members for more than 5 years, and it has been very successful,” said Douglas Wolf, president and CEO of Midwest Corporate. “It’s good for our members, and in turn, good for Midwest Corporate. We believe in the program, and are very excited about moving forward as owners of Primary Financial,” he added.

“We are delighted to be part owners of Primary Financial and to be able to offer SimpliCD to our members,” added Jane Melichonda, president and CEO of EasCorp. “Our members have always looked to us to be a full-service provider of A/L services, and SimpliCD will be a great complement to our other investment offerings,” she said.

“I speak on behalf of the entire board of directors when I say that we are elated that Primary Financial has achieved full corporate ownership with the addition of these three new owners,” said Greg Moore, board chairman of Primary Financial and president/CEO of Georgia Central Credit Union. “There really is no more fitting finale for a year that has been marked by an extraordinary degree of cooperation among corporate credit unions.”

Primary Financial, based in Columbus, Indiana is a CUSO owned by twenty-nine corporate credit unions and U.S. Central. Primary Financial has been in business since 1996 and currently serves more than 2,000 credit unions throughout the United States through the SimpliCD certificate placement service, with more than $3 billion in credit union investments.

For more information, please contact Paul Hixon at 800/282-2560 ext. 9313 or Amy Fuller at 800/768-4228 ext. 361.