ARLINGTON, Va. (8/11/11)--An agreement to provide delivery of correspondent services to Iowa credit unions has been established by The Members Group (TMG), a subsidiary of the Iowa Credit Union League, and Washington, D.C.-based NCB, FSB, a federally chartered financial institution that serves cooperatives and their members. The solution combines member service capabilities of TMG with products and financial strength of NCB and will serve Iowa credit unions as the Iowa Central Corporate CU winds down its services. According to the two companies, the NCB proposal:
* Requires no capital investment by Iowa credit unions now or in the future; * Provides products and services consistent with those offered today by the Iowa corporate; * Delivers better rates than the Fed and keeps cost of services generally consistent with pricing today; * Offers local delivery of services using support staff at TMG; * Demonstrates financial security with NCB's strong balance sheet, high level of liquidity and a total risk-based capital ratio in excess of 15%. It also offers 100% protection by the Federal Deposit Insurance Corp.'s deposit insurance fund through at least the end of 2012; and * Supports the credit union community with NCB's history of industry leaders serving on its board and its focus on collaboration with credit unions and other cooperative organizations.
"As the Iowa Corporate works towards unwinding our operations, we are happy to be able to offer Iowa credit unions an attractive alternative for their correspondent banking services," said Sara Flynn, CEO of Iowa Corporate. "We look forward to working with Iowa credit unions to transition them to the new solution." The transition will take place over the next few months.