Non-member deposit accessed via CU Capital Market Solutions exclusive program for Low-Income Designated CU’s
ATLANTA, Aug. 11, 2016 — Low-Income Designated Credit unions can now receive non-
member deposits through a funding program provided exclusively by CU Capital Market
Solutions, LLC (CMS). This program is specifically designed for maximum ease and utilizes the NCUA pass-through insurance.
As credit unions finalize their 2017 strategic plans, they have a new funding and liquidity
option available for Balance Sheet Management through CU Capital Market Solutions
(CMS). The Atlanta-based CUSO launched the program on August 8 with the first non-
member deposit of $5 million. The deposit was received by Jefferson Financial Credit Union of Metairie, La.
CU Capital Market Solutions facilitated the deposit through its network of federally insured
institutions. “It marks the first time credit unions have had access to a funding source of
this kind”, according to CEO Lew Lester.
Jefferson Financial received the $5 Million at a relatively low cost of funds. The cost of
funds for this deposit was executed at 65 basis points, with no fee paid by Jefferson
Financial. Jefferson Financial’s CEO, Mark Rosa, explained that “this is the beginning of
what most likely will be $40-50 Million in non-member deposits that Jefferson Financial
will access through the program. The credit union industry has long needed this funding
ability and now we have it. It’s good for the institution and good for the industry”
Bob Colvin, President and Chief Strategist at CU Capital Market Solutions pointed out that
these deposits are available to Low-Income Designated Credit Unions with a simple one
page form and one phone call to the CU Capital Markets Solutions Funding desk. There is
currently no long term commitment on this deposit and as such, the deposit can be
returned at any time with no penalty to the Credit Union that accesses the funding.
CMS is also structuring longer term deposits to fit various Credit Union desires for longer
term committed deposits. The service will enable credit unions, including smaller CU’s, to
receive the necessary deposits to fund their loan growth to insure their members have
access to the best financial services going forward.
CU Capital Market Solutions believes this program will assist Credit Unions of all sizes in
their strategic planning as plans can be put in place with the security that the necessary
capital will be available even without expected member growth.
“This is a great source of liquidity that doesn’t require collateral or an investment on behalf
of the Credit Unions to receive these deposits, so the real benefit is it helps credit unions
better serve their members,” Colvin said.
About CU Capital Market Solutions (CMS)
CU Capital Market Solutions, LLC, is a CUSO that recently purchased the assets of CNBS, which primarily provided brokerage services to credit unions for 25 years. CMS will continue to provide clients with existing products and services and expanded its offerings to include Balance Sheet Strategies and Earnings Optimization, Non-Member Funding, Insured Deposit Programs, Secondary Capital and Securitized Assets programs. For more information call 800-222-0978 or email firstname.lastname@example.org