Dear Members:

At our annual meeting on April 28, Corporate One announced the results of the election of directors and highlighted our financial and strategic achievements from the past year. Despite the challenges faced by our members, peers, communities, and the country due to the ongoing global pandemic and its related effects, in 2021 we proactively continued to advance our strategic initiatives on behalf of members and strengthened our financial position, driving value by remaining a sound financial partner, innovating to meet consumer demands, and fostering a robust organizational culture.

We continued to make great strides in our business objectives in many key areas of the organization and our long-term strategies around cash management, investments, funding, and payments, as well as leveraging the CUSO model to serve even more credit unions. Highlights include the following:

• Despite lower net interest income from continued margin compression, our diversified income sources and conscientious spending allowed us to distribute $3.4 million in Perpetual Contributed Capital (PCC) dividends, which was the third highest dividend paid to our PCC holders since PCC was first issued in 2011.
• We ended the year with $202.8 million in retained earnings and $419.6 million in total regulatory capital.
• Corporate One and our CUSO Sherpa Technologies created three new product offerings to assist credit unions with the shift to real-time payments:
  • Sherpa’s Real-Time Payment Services for connecting to the RTP® network.
  • Corporate One’s Funding Agent Services for easy cash management on the RTP network.
  • RTP receive/send capabilities for Corporate One account holders.
• Lucro Commercial Solutions used its Digital Business Lending Center to create an even more successful Paycheck Protection Program than in 2020, generating 4,235 in loans and $12.1 million in revenue for their lending partners.
• Accolade Investment Advisory rolled out a CECL (current expected credit loss) solution to help credit unions with the highly anticipated transition to the new methodology of accounting for credit losses.
• In addition to its Real-Time Payments Service, Sherpa launched a new unified solution for digital account opening and no-credit impact, pre-qualified digital lending with pilots and early adopters.
• We continued to help our credit union members gain increased access to liquidity through the Central Liquidity Fund. Corporate One maintained an investment of ~$42.6 million investment in capital at the CLF to support 378 member credit unions with assets of $250 million or less, so they would have access to emergency liquidity, if needed, throughout the pandemic.
• We welcomed 10 new members to our corporate family.

I encourage you to review our 2021 Financial Report for more details on our performance and how we continue to work diligently to help our members succeed. We believe that Corporate One and our wholly owned CUSOs are well positioned to advance our strategic initiatives and long-term financial performance through our ongoing investments in technology digital innovation, and people, and we are looking forward to the future.

Best,