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Corporate Centrals PIC offering nets 47 million
MUSKEGO, Wis. (8/10/09)--Corporate Central CU members have contributed more than $47 million to Paid in Capital (PIC), indicating a strong commitment of ownership, announced Corporate Central. As of July 31, the closing date, 155 members of the corporate participated in the offering, with an ending total of $47,363,996. "Corporate Central CU's members have spoken; they have determined the value of Corporate Central, and they have expressed their desire to set the course and direction for their corporate credit union," said Corporate Central's press release. The corporate had hoped to raise $60 million but still termed the PIC contributions a success. "While the goal of $60 million was not achieved during this initial PIC offering, that amount was only what we were targeting to get back to the 4.35% core capital level prior to the impairments at U.S. Central," said President/CEO Robert W. Fouch. He said the contributions put the corporate "well above the regulatory minimum of 2% core capital. Our members have demonstrated the commitment and responsibility of ownership by ensuring that Corporate Central CU stands strong." In April, the corporate sent a PIC offering with a closing date of July 31 to its Membership Capital Share Deposit members. A letter from Fouch noted they had been informed earlier that the corporate's balance sheet would reflect impairment charges as a result of U.S. Central's conservatorship. "The math is such that Corporate Central still has retained earnings and none of your Membership Capital that you have with us is impaired," Fouch's letter said. "Due to regulatory restrictions, we are now forced to get our core capital levels back above the minimums." After the offering, the corporate held discussion and question-and-answer sessions. "The response was overwhelming," said the corporate. "The overall tone was one of commitment and support as members vowed to stand behind their credit union." All of Corporate Central's board members participated in the PIC offering, said Daniel Ige, board chairman, in a letter in early July. The corporate also added a website for members with an animated wall of building blocks to show where the corporate stood in its PIC goal. As the wall got higher, momentum picked up and commitment forms starting pouring into the corporate. Members' testimonials can be found on the corporate's "Building Our Future Together" website by using the resource link.
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