COLUMBUS, Ohio—Corporate One Federal Credit Union said it has partnered with PMA FundingTM (PMA) so it may offer brokered public fund deposits.
The solution is “an alternative and beneficial funding solution for federally insured credit unions nationwide, regardless of their membership in Corporate One,” the corporate said, adding it is the only corporate credit union able to offer credit unions this unique solution through its relationship with PMA.
“We think this is an extremely valuable funding option for credit unions to consider when developing their funding strategy,” said Lee Butke, President/CEO, Corporate One, in a statement. “While some states may restrict public unit deposits (PUDs) from placing funds with credit unions, there are several states from which credit unions can accept deposits from political subdivisions. And, through our partnership with PMA, we are making it easier for credit unions to access these public unit deposits. As our partner, who is a broker and expert in this field, PMA will help credit unions facilitate accepting deposits through a simple and streamlined experience. The business model reminds me very much like what we created for credit unions years ago with the SimpliCD brokered CD investment and issuance solution.”
The company said public unit deposits is the latest solution to be added to Corporate One’s Funding Solutions that include lines of credit, various term loans, SimpliCD issuance, and warehouse lines of credit. Public funds offer deposit diversification and are a stable funding source for credit unions that can help satisfy their short- or long-term or small- or large-block needs. Interested credit unions have the potential to access funds from 2,400 public entities, such as school districts and other municipalities, as a result of Corporate One’s partnership with PMA.