PLANO, Texas (12/6/11)--Catalyst Corporate FCU, which has been in operations less than two months, has already hit the "well-capitalized" status, earlier than the projected 2013 date.
In a letter to its membership, Catalyst President/CEO Dianne Addington said the corporate had reached a 5.01% leverage ratio and that its first two months of operations "far exceeded expectations."
During September, Catalyst's return on assets was 0.35%, compared with 0.04% forecast. Its coverage ratio, or net fee income divided by operating expense, was 102.9%, greater than the 82.9% the corporate had forecast. Addington attributed the numbers to "efficient operations and member support.
Catalyst was formed by the merger of two corporates--Georgia Corporate FCU, based in Duluth, Ga., and Southwest Bridge Corporate FCU, based in Plano, Texas. The combined corporate has 890 capitalized members with more than $95 million in perpetual contributed capital. It also has verbal commitments from seven credit unions in the process of completing paperwork that would provide an additional $986,000 in perpetual contributed capital, and 31 other credit unions are in the process of evaluating the corporate.
The corporate plans to roll out mobile banking, mobile capture and lockbox processing services early next year, Addington said. "The leadership team of Catalyst is working purposefully to execute the business plan that was presented during webinars and town hall meetings over the past year," she said. To continue its commitment to transparency, Catalyst will start posting soon on its website a special report comparing 28 target ratios that were listed in the business plan and Catalyst's actual performance.
The corporate also will include updates on non-statistical commitments that were made and were fulfilled, she said.
Catalyst opened its doors Sept. 6, with 880 member credit unions and $93 million capital---representing 74% of previous shareholders capital (News Now Oct. 3). The merger made Southwest Bridge Corporate the first corporate to come out of bridge status--in advance of the two-year timeframe established by the National Credit Union Administration in fall 2010, , when the corporate was placed under conservatorship (News Now Aug. 31).