First Corporate Credit Union has announced it has surpassed the minimum 4% capital that the NCUA requires starting in October.
“We are in the 5.85% range,” said Pete Pritts, CEO of Phoenix-based FirstCorp.
Pritts added that the 48-member corporate now anticipates that it will add new members.
“We had had many credit unions tell us, check back when you are capitalized. We are and we will,” said Pritts, who indicated that current members are from “the sand states.”
In light of recent news – especially surrounding the purported failure of United Resources (nee Western Bridge) – Pritts said FirstCorp has been fielding calls from Western Bridge members and he anticipated more will come in.
He stressed that FirstCorp – which has members ranging from below $1 million in assets to over $3 billion – structured a capitalization commitment designed to be affordable.
“It is a 50-basis-point commitment, capped at $1 million,” he said. Thus a $1 million credit union puts up $50,000 and any credit unions at $200 million and higher put in $1 million.
“We are ready to take on new members. We definitely are open for new business,” said Pritts.