Southeast Corporate Federal Credit Union announced Monday it has been given the green light by the NCUA to offer its Perpetual Contributed Capital subscription plan to members.
The Tallahassee Fla.-based corporate’s CEO, Brad Miller, said in a statement, “Over the past few months, we have laid out a comprehensive, 10-year strategy for member/owner credit unions. We have incorporated members’ feedback and are pleased to move ahead with our PCC offering.”
The same statement quoted Jeanne Kucey, CEO of Miami Lakes, Fla.-based JetStream Federal Credit Union as saying that her credit union had voted to recapitalize Southeast Corporate. “It’s our best opportunity to preserve current capital. There will be no disruption of services or member inconveniences, and it allows for maintaining an effective and cost efficient single source for payment, settlement and liquidity services,” she said.
Southeast serves around 400 credit unions.
The draft business plan, as described late in 2010, seeks to raise $80 million in PCC to support a $2 billion balance sheet. The funding formula equates to 45 basis points of average assets with a cap of $2 million, Southeast said.