Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Corporate Central ahead of NCUAs capital measures
MUSKEGO, Wis. (12/22/10)--Corporate Central CU says it is "well ahead of all capital measures contained in the National Credit Union Administration (NCUA) corporate credit union regulations," thanks to member contributions and growing retained earnings. The corporate's member credit unions have contributed more than $60 million to perpetual contributed capital (PCC) since it started capital-building efforts in July 2009. Also, the corporate secured more than 170 new service commitments this year and welcomed 40 new full members, which brought a capital commitment and many, if not all, of their services, the corporate said Tuesday in a press release.
Click to view larger image Click for larger view
Corporate Central's current capital measurements and base case Net Economic Value (NEV) ratio, compared with NCUA's regulatory minimums are shown in the table. The corporate encouraged credit unions to perform due diligence and evaluate corporate relationships based not only on the capital measurements but also on its business model. The corporate's statement said it distinguishes itself by standing by the business model it always has had in place and which adheres to the basic principles of business: discipline of trust, discipline of integrity and discipline of stewardship. It noted its business model:
* Uses the "SLY" principle--safety, liquidity and yield, in that order--in investing; * Believes the corporate's core responsibility to be sound stewardship of members' entrusted relationship with it; * Recognizes and concentrates entirely on the primary financial institution (PFI) relationship with members, which drive long-term success; * Partners with "best in class" providers for variety of products and services, maintains expense control and allows capacity to take on a significant number of members and services, thus continuing to drive the value and volume to benefit all members. * Requires new members to invest in a non-perpetual contributed capital (NCA) account, with a future requirement to exchange part or all of the initial NCA investment to PCC to ensure health, manageable and responsible growth.
"As we near the end of yet another challenging year for our industry, it is important to note that while corporate credit unions have been lumped together and cast under a collective negative spotlight, your Corporate Central CU has had a successful year and is well-positioned for the future because of your support," President/CEO Robert W. Fouch said in a communication to members.


RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
11 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
12 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
13 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
13 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
14 hours ago