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First Carolina Corporate reports strong financials
GREENSBORO, N.C. (5/1/12)--First Carolina Corporate CU in Greensboro, N.C., reported 2011 earnings of $5.2 million--more than twice its original budget projections.

Retained earnings were $8.4 million, for a ratio of 0.53%, which surpassed the National Credit Union Administration's (NCUA) October 2013 required threshold of 0.45%.

First Carolina also exceeded NCUA's requirement of total capital--4% by October 2011--at 5.20% at year-end 2011, based on 12-month rolling average assets. Calculated on December 2011's average assets alone, the ratio is 6.10%.

Year-end assets were $1.45 billion, compared with $1.918 billion in 2010. The drop was intentional, based on its capital restoration plan, said the corporate.

"Our strategy called for moving a portion of members' deposits off balance sheet, allowing us to maintain average assets at a target managed level of $1.5 billion," said David Brehmer, president/CEO of the corporate. "The off-balance-sheet funds are completely liquid and accessible on a daily basis, earning the same rate as if they were to stay on our balance sheet. Taken together, members' on- and off-balance-sheet deposits were flat in 2011."

Other initiatives in 2011 included First Carolina's new Private Label Student Loan Solution, provided through an exclusive arrangement with Campus Door, said Brehmer. The program gives credit unions an affordable, customizable way to help their members pay costs of higher education, said the corporate.

First Carolina focused on new product development and transitioning services from U.S. Central Bridge FCU to other platforms. First Carolina, which had previously planned to eliminate operational dependencies on U.S. Central, has nearly completed the process.

The corporate will hold its annual meeting in Pinehurst, N.C., in June, where it will elect board members and committee chairpersons.
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