WARRENVILLE, Ill. (2/17/12)--Alloya Corporate FCU announced Wednesday that it recorded net income of $9.6 million for the 2011 calendar year and is ahead of targeted capital projections.
After accounting for dividends paid on perpetual contributed capital (PPC), Alloya reported retained earnings of $20.5 million as of Dec. 31.
Regulatory capital (retained earning plus perpetual contributed capital plus nonperpetual capital accounts) was $93.7 million as of Dec. 31, resulting in a capital ratio of 5.6% and a retained earnings ratio of 1.2% as, based on moving daily average net assets of $1.7 billion. The results are unaudited.
"Alloya is executing on a financial plan to earn $3 million over the next 12 months to further bolster retained earnings," said Todd Adams, Alloya's chief financial officer.
When compared with the plan presented in Alloya's private placement memorandum (for the sale of perpetual contributed capital and nonperpetual capital accounts), retained earnings are three-and-a-half years ahead of base-case scenario targets, Adams said. The retained earnings ratio of 1.2% exceeds the 0.45% required in October 2013, and is ahead of the 1% target required in 2016, he said.
Alloya's balance sheet is smaller than might otherwise be expected from a corporate credit union with such a large member base and volume metrics. That is a result of Alloya's business and capital plan, which is based on how credit unions use the corporate's balance sheet and not the member credit unions' individual asset size, Adams said.
"Alloya's flexible capital plan provides significant advantages to our members," said Charles Furbee, Alloya's CEO,. "In this case, besides reducing their capital investment, by working with the Federal Reserve to implement an Excess Balance Account program and implementing it via the corporates' secure account management portal "'Premier View,'" the corporate has built an efficient process that helps minimize concentration risk for our members."