Catalyst Corporate has announced passing ”another milestone” on the road to forming a new corporate out of a merger of Southwest Bridge Corporate into Georgia Corporate, according to Greg Moore, CEO of the Duluth, Ga.-based Georgia Corporate.
Moore said Catalyst now claimed 867 members who had contributed $91.3 million in Perpetual Contributed Capital. He indicated he expected to have “close to 900” credit unions as Catalyst members by next month.
“Many credit unions are just now making their decisions and I expect we will get some more,” Moore said in an interview.
To date, approximately 74% of the previous capital shareholders of the two corporates have come on board as capitalizing members of Catalyst Corporate, said Moore. “I feel very good about that number. We are getting the capital we need to launch next month.”
Moore added: “We will be above the 4% requirement for achieving adequate capitalization. Our forecast is that we will reach well capitalized status by 2013.”
Recently, Georgia Corporate FCU and Southwest Bridge Corporate FCU transferred members’ pledged Perpetual Contributed Capital into escrow – “signaling confidence that the business plan laid out earlier this year will succeed,” the corporates said in a statement.
The statement continued: “The joint strategic plan, presented to member credit unions in March, stated that as soon as sufficient capital subscriptions were obtained, pledged funds would be moved into an escrow account at U.S. Central Bridge FCU in preparation for the eventual transfer of these funds to Perpetual Contributed Capital, or PCC, on the date of the merger.”
Upcoming events for Catalyst include NCUA approval of the merger application, slated to occur in August, with the consolidation taking place shortly thereafter on Sept. 6, according to Moore.