SimpliCD Market Penetration Soars –
Nearly 2,500 Credit
Unions Now Investing Through CD Program
COLUMBUS, IN – The new 100% corporate-owned and operated
structure of Primary Financial is working even better than
expected according to recent second quarter financial figures.
At the end of June 2004, the number of credit unions investing
in SimpliCD through Primary Financial has increased to almost
2,500, which is more than 26% of all credit unions nationwide.
That translates into an increase of nearly 44% in the number
of credit unions using SimpliCD since the ownership change
that occurred in August 2003.
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 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 $3.4 billion.
“When Primary Financial was acquired by Corporate Exchange,
we expected substantial growth, but what we’ve seen has well
exceeded our expectations,” said Greg Moore, chairman of
Primary Financial and president/CEO of Georgia Central Credit
Union. “At the middle of the year, we were already
significantly ahead of the goals we’d set to achieve by the
end of 2004 – proving that expanding the ownership structure
was right on the mark strategically.”
“This is what we envisioned from the beginning,” said Lee
Butke, president and CEO of Corporate One Federal Credit Union
and board member for Primary Financial. “The goal is to offer
SimpliCD to as many credit unions as possible. Credit unions
know their corporates are looking out for their best
interests, and it’s that trusted partner relationship, along
with great rates and service that has contributed to the
ongoing success of the SimpliCD program,” he added.
“We’ve been offering the SimpliCD program to members for
more than two years now. We continue to add new members
because of SimpliCD’s competitive rates and ease of use,” said
Bill Walby, CEO of Central Corporate Credit Union. “Most
members use SimpliCD for investment purposes, but we have had
one member that has used it to obtain term deposits.”
Primary Financial, based in Columbus, Indiana, is a credit
union service organization (CUSO) owned by twenty-nine
corporate credit unions and U.S. Central. Primary Financial
has been in business since 1996 and currently serves almost
2,500 credit unions throughout the United States through the
SimpliCD certificate placement service, with more than $3.4
billion in credit union investments outstanding.
For more information, please contact Paul Hixon at
800/282-2560 ext. 9313 or Amy Fuller at 800/768-4228 ext.