GREENSBORO, N.C. (5/2/11)--First Carolina Corporate CU raised $60.6 million as of Thursday through its Perpetual Contributed Capital (PCC) subscription offering. The amount exceeds the minimum goal set for the Corporate’s Capital Restoration Plan, which was submitted to the National Credit Union Administration (NCUA) in January.
Board Chairman Scott Woods credits the progress of the corporate’s recapitalization to the quality of the plan. “The staff at First Carolina has worked tirelessly to present our members a comprehensive, well-thought-out plan on how to move the corporate ahead and succeed under the new regulatory environment,” said Woods, president/CEO of South Carolina FCU, North Charleston. First Carolina had set a target of raising $60 million to $75 million in PCC and has received confirmation from 134 member credit unions to-date that their recapitalizations were approved by their boards. Of the amount committed, $39.1 million represents new capital investments and $21.5 million signifies conversions of existing membership capital share deposits.
“Given the PCC raised and our estimated average assets, we expect to be in full compliance with NCUA’s regulatory requirements for capital and net economic value well before the October 2011 deadline,” said David Brehmer, president/CEO of First Carolina. “It’s a strong sign that our members want First Carolina to be their corporate credit union into the future. We deeply appreciate credit unions’ support of our mission and recapitalization effort.” Brehmer says several credit unions will consider First Carolina’s plan in May. “We’re hopeful the PCC total will continue to grow as additional credit unions hold board meetings to discuss our plan,” he said. Based in Greensboro, N.C, First Carolina Corporate CU is a $1.7 billion corporate serving credit unions in four states.