First Carolina Corporate Tops Capital Restoration Funding Goal
First Carolina Corporate Credit Union announced Friday it has raised $60.6 million through its Perpetual Contributed Capital subscription offering, an amount that falls into the $60 million to $75 million target specified by First Carolina in the capital restoration plan filed with the NCUA in January.
Some 134 member credit unions committed to capitalize First Carolina.
“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,” First Carolina CEO David Brehmer said in a prepared statement.
Of the $60.6 million committed, First Carolina said $39.1 million represents new capital investments; $21.5 million represents conversions of existing membership capital share deposits.
In an interview, Brehmer elaborated that under 10% of First Carolina members have so far declined to participate in recapitalizing the corporate. All in, he said, he expected that at least 85% of present members will participate.
“We have a good story to tell,” said Brehmer. “We have been very transparent with everything that’s been going on. Our members have a good understanding of what we have been through and where we are heading.”