Secondary Capital Supports CORE Credit Union’s Growth


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CORE Credit Union in Statesboro, Georgia got their first secondary capital loan from the Federation at the end of 2011. “We were growing really fast and had to make a decision. We needed some kind of relief or we needed to stop growing the credit union. That to me wasn’t an option,” says Bobby Michael, CORE CEO. “The last thing we wanted to do was to put the brakes on our growth because of capital ratio constraints. The boost in our capital from the Federation’s loan has allowed us to keep growing at pretty much a double-digit pace.”

From Dec 2011 to Dec 2013 CORE grew in assets by 12%, loans increased by 13% and membership grew by 12%. CORE, originally a teacher’s credit union, got their community charter in 2007. “In our section of southern Georgia we serve the underserved, people who are looking for someone to give them the credit they deserve. It’s really amazing to see how many people we have helped to step up, whether it’s a young college student or a 40 year old who had a credit misstep in the past.”

Among CORE’s offerings is the Five’s Home Buyer Program, a new program for first-time home buyers. Members must successfully complete a series of seminars to participate. Home buyers are required to put down 5% of the purchase price of the home. Their mortgage for the first 5 years has an interest rate of 5%. Members can save toward their down payment in a savings account which earns 5%. Closing costs are - you guessed it – $5.00! The first home was purchased in April 2014 with another 5-7 members slated to purchase a home through the summer of 2014.

 

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