Greensboro, N.C. (Nov. 13, 2012) – In early 2012, First Carolina Corporate Credit Union began partnering with Protective Securities for brokerage services, resulting in a much wider array of securities, including municipals and SBAs. Further, having access to most investments on the market has allowed the Corporate to be more price competitive. Now, First Carolina expects a record-breaking year – the best, in fact, since it began offering brokerage services in 2004. The Corporate has traded almost $200 million in securities just through October.
Fred Eisel, SVP/Chief Investment Officer of First Carolina and a registered Protective Securities representative, says the brokerage relationship has enabled the Corporate to grow its accounts and add staff to handle increased business.
“Protective Securities has an online Advisor Portal, which makes areas such as trading, compliance training, settlements and commission statements very efficient,” he said. “Members like the wide variety of bonds, and due diligence is easier for them. It’s a large, extremely well capitalized firm backed by a large parent company, Protective Life.”
According to Scott Wood, Investment Analyst at First Carolina, and another registered representative with Protective Securities, the move has provided direct access to a much greater inventory.
“Because of our direct access to live inventories, we’re able to find our members the best-priced bonds and can be more aggressive about showing them to credit unions,” Wood said. “First Carolina is very competitive with other brokers and that, in turn, has allowed us to attract more credit unions and increase our trading volumes.”
Todd Kenthack, CFO of the $173 million Carolina Trust Credit Union based in Myrtle Beach, S.C., agrees. He says working with Protective Securities just makes good sense, allowing the Credit Union to work with First Carolina while often providing a positive impact on investment yield.
“Fred and Scott always take time to fully understand our needs and, unlike many other brokers, they never push product,” he said. “Like most credit unions, we maintain brokerage relationships with several reputable firms. I’m very pleased First Carolina chose to partner with Protective Securities. Since signing on late last year, they have quickly become our ‘preferred’ broker. I’ve found their pricing, access to new and secondary issues, and overall service second to none.”
Eisel says credit unions wishing to participate in First Carolina’s brokerage services through Protective Securities do not have to maintain Permanent Contributed Capital (PCC) with the Corporate.
“We have a number of users outside our core field of membership,” he said. “Many credit unions that no longer have a corporate relationship are looking for a high-quality brokerage with a focus on and understanding of our industry. Partnering with Protective Services has blended well with our growing ALM Services division as well, since our ALM users are able to model a variety of investment strategies and then execute those strategies right here, at First Carolina.”
About First Carolina Corporate
First Carolina Corporate Credit Union, headquartered in Greensboro, N.C., is a $1.7 billion, full-service corporate serving credit unions in six states. Founded in 1980, First Carolina is a “credit union for credit unions,” dedicated to building a stronger, more independent credit union-owned financial network. For more information, visit www.firstcarolina.org.