MIDDLETOWN, Pa. (10/27/11)--Having reached the necessary capital levels to continue to operate under the National Credit Union Administration's new corporate regulation over 15 months ago, Mid-Atlantic Corporate continues to add more capital and new members.
More than 700 credit unions have committed over $129 million in capital--$119 million of which is in perpetual contributed capital (PCC)--to Mid-Atlantic Corporate CU.
"As the first corporate to develop a new business plan to achieve the necessary regulatory capital levels, we've been able to spend the last year focusing on new ways to save our members money by "group buying" electricity, office supplies and other back office support functions," said Jay Murray, Mid-Atlantic Corporate president/CEO.
Murray said Mid-Atlantic prepared itself for new regulatory realities and other marketplace changes. "Based on discussion with NCUA, we knew more capital would be needed to offer all services that we do and and, most importantly continue with our lines of credit. The purpose of corporate credit unions is to provide liquidity and you can't do that without a balance sheet."
As for whether Mid-Atlantic Corporate will continue to add new credit unions, Murray said it has received interest from credit unions nationwide and has the infrastructure in place to assist those credit unions that need to find alternative solutions to their current service providers.
"The NCUA's new corporate regulation has created a more stringent operating environment," Murray said. "However, we've created a business plan that will allow us to continue to add members without creating a negative impact to our balance sheet. And because of our membership's support, we are well-positioned to continue to serve the needs of credit unions for a long time."