PLANO, Texas (12/9/10)--Webinars are scheduled for Dec. 15 and 16 to explain recommendations for the Southwest Bridge Corporate FCU business model. The bridge corporate’s Member Advisory Council met Nov. 30 to review its executive committee’s recommended business model. Council members approved recommending the consolidated business model with Georgia Corporate FCU to all 1,400 Southwest Bridge Corporate members and presenting it to the NCUA for approval. Highlights of the approved business model include:
* Acquisition by Georgia Corporate FCU, via a purchase and assumption process, in the summer of 2011. The perpetual contributed capital (PCC) subscription period would be from February to June 2011. * The PCC formula is 0.25% of assets with a maximum cap of $750,000, a cap of $600,000 for credit unions between $240 million and $750 million in assets, and a proportional threshold for credit unions $50 million or less in assets. * The consolidated corporate will continue to offer all critical products, including the off-balance sheet services provided by owned credit union service organizations, including Southwest Corporate Investment Services and CU Business Group. * The size of the consolidated balance sheet will be reduced to between $2.6 billion and $3.3 billion to minimize the amount of required PCC, while ensuring the ability to provide sufficient lines of credit to meet settlement and access to contingency lines of credit.