Multi-Factor Authentication for
VolCorp Online

Because of our commitment to you, our members, we want to make the transition to multi-factor authentication for VolCorp Online as seamless as possible. There are necessary upgrades to be made to Access Image-Net that require us to take additional time for testing than was previously expected, thereby delaying the effective date of the new multi-factor authentication process. VolCorp will be posting updates on its website with more information.

We apologize for this delay, but our goal is to ensure that the multi-factor authentication is an easy transition for you. We will mail the multi-factor authentication tokens in ample time for you to register them prior to our live date.

In the event you have any questions, please contact Sherry Alers (extension 280) or Karen Clabough (extension 274) at 615-232-7900 or 1-800-470-3444.

May 2008 VolVoice Newsletter!

   • Long on Cash? Try a Short Ladder
   • Jeff Merry Returns to VolCorp
   • Did You Know: International Wires-Foreign Exchange (FX)
   • Designate Your APEX Administrators
   • Duration Gap: Primary Measure of Interest Rate Risk

Branch Capture Feature Upgrades

Branch Capture software has now been upgraded to version 2.5 with great new features and enhancements. Click to view more details about the new features.

If you did not receive a CD for the upgrade or haven’t contacted our IS Staff to walk you through the installation process, please contact Sean Wales, ext. 227 or Gary Jakes, ext. 288. They will schedule a time that is convenient for you to install upgrade.

1st Quarter Membership Capital Account Rate

On March 19th, the VolCorp Board of Directors set the 1st quarter Membership Capital Account rate at 4.50%. I believe that you will find this to be the highest rate paid on membership shares by any Corporate in the country. The reason VolCorp is able to pay this premium rate is because of the tremendous support we receive from our members in looking to VolCorp as their primary source for solutions. VolCorp also set a new high in assets during the quarter, exceeding $1.6 billion for the first time. Paying you premium rates is one of the best ways we know of showing our appreciation and we hope to be able to do this for many years to come. Thank you.

- Rick Veach, VolCorp President/CEO

VolCorp Assets Exceed $1.6 Billion

On March 1st, VolCorp’s assets set a new record at $1.625 billion. This is the first time in VolCorp’s 27 year history that assets have been greater than $1.5 billion. Thank you members for your confidence and support.

U.S. Central Communication

February 5, 2008

Today, Standard & Poor’s lowered U.S. Central’s long-term credit rating from “AAA” to “AA+”. The rating action was prompted by S&P’s concern over values of mortgage-related securities in U.S. Central’s investment portfolio. These securities were purchased with the intent of holding them until maturity and are not needed for liquidity purposes. The unrealized losses represent mark-to-market adjustments that are not surprising considering the current investment environment.

The new rating of “AA+” is still one of the highest for any U.S.-based depository institution and reaffirms the fact that U.S. Central remains strong and healthy. S&P’s rating of U.S. Central’s commercial paper remains unchanged at “A-1+”.

As has been our long-standing practice, Volunteer Corporate regularly performs due diligence on U.S. Central and we will continue to carry out a monthly credit analysis. We remain confident in U.S. Central’s financial strength and its ability to meet member needs. As an example, 95 percent of U.S. Central’s long-term investments are rated AAA, they have more than $3.5 billion in cash, and have access to more than $20 billion in liquidity.

With regard to Volunteer Corporate, we are happy to report that we have been mostly immune to the direct effects of the market dislocation, having only 1% of our investment portfolio invested in non-agency mortgage-related securities, all of which were issued prior to 2006 and continue to be rated AAA. Furthermore, the mark-to-market losses related to our available-for-sale investment portfolio equals less than $500,000. This represents less than 1% of our total capital of $77 million. Our capital ratio of 6.72% exceeds NCUA requirements for corporate credit unions.

- Rick Veach, VolCorp President/CEO

U.S. Central Credit Union’s ACH Audit Policy

The required annual audit of Automated Clearing House (ACH) rules compliance has been completed and the results of the audit indicate that as a third-party service provider, U.S. Central is compliance with NACHA Operating Rules.

Read Official Letter

If you have any questions regarding U.S. Central’s ACH Audit Policy, please contact VolCorp’s Marketing Department at extension 3.