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.
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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.