Missouri Corporate refunds excess cap commitments to CUs

ST. LOUIS (9/29/11)--Missouri Corporate CU (MCCU) will refund $2.6 million in excess capital commitments to its members, the corporate announced Wednesday.

The capital commitments resulted from the corporate's recent re-capitalization effort, which aimed to raise a minimum of $17.5 million. Member credit unions actually pledged more than $22.6 million.

In a meeting Thursday, the corporate's board of directors voted to top the capital commitments at $20 million and return roughly $2.6 million in escrow to current members.

"The support of our members was overwhelming and well beyond our expectations," said Dennis DeGroodt, president/CEO of MCCU. "It is unusual, especially for a corporate credit union, to return excess capital commitments, but that's exactly what we are doing. Right now, our members need the funds more than we do," he added.

The amounts refunded ranged from $182 to $92,300. Even with the refunds, MCCU remains adequately capitalized with a Leverage Ratio of 5.5%, a Tier-1 Risk Based Capital ratio of 114.3% and a Total Risk Based Capital Ratio of 151.9%, as of Tuesday, the announcement said.

DeGroodt said the corporate, which serves 124 natural person credit unions, would welcome new members.

"We're not a large corporate, and our focus is not on scale," said DeGroodt. "Our focus is on providing a high level of personal service, backed by a full range of products that are designed to simplify our members' interaction with us. Our goal is to become 'invisible' to credit union employees and free their time to concentrate on their own members."

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