Iowa Corporate Board Chair Roger Reiser said participating in the share guarantee "didn't provide much value to our membership" because Iowa Corporate is "very well-capitalized, I think the best in the country." Per Iowa Corporate's first-quarter 2009 5310 report, its net worth ratio is 22.44%, with a 14.21% retained earnings ratio.
Reiser, who is president/CEO of the $250 million Des Moines-based Community Choice Credit Union, said not one member questioned the move, adding, "We have very good support, and quite a few members have commented that they trust the board to make right decision."
LICU Corporate differs from other corporates in that its primary function is to provide payroll clearing services for former IBM credit unions, said Chair Frank Berrish, president/CEO of the $2.2 billion Visions Federal Credit Union. As such, he said, the corporate share guarantee "really did not pertain to us."
"We have less than $5 million is assets and no investments at US Central. We have no member capital shares and are used by our members only for clearing payrolls, as most member balances are under $250,000," Berrish said.
The Endicott, N.Y.-based corporate reported a 33.0% net worth ratio and retained earnings ratio on its first-quarter 2009 5310 report.