It’s not over until it’s over.
Although many have been counting as failed the drive to capitalize United Resources, Patelco - the $3.7 billion, Northern California credit union with 290,000 members - now apparently has decided to support the new corporate that is attempting to rise out of Western Bridge.
Wrote Scott Waite, Patelco CFO, in an email Friday: “After considerable discussion during the last 3 months, Patelco has decided to pledge capital support for United Resources.”
Stuart Perlitsh, CEO of Glendale Area Schools FCU, commented: “It’s great that Patelco can be that benevolent. But it seems clear United Resources won’t have the income to go forward. The business model is based on volume and you can’t have volume if you don’t have the members.”
Exactly how much capital Patelco has committed has not been disclosed. In May, Matt Davidson - CFO of Kern Schools FCU and a member of the board of directors of United Resources - indicated that the maximum required capital contribution for a United Resources member would be $2.5 million.
“A credit union can elect to contribute more, depending on its circumstances,” said Davidson in an interview Friday.
Davidson added, “Every day we are getting more credit unions writing checks. We are hoping beyond hope to meet the $200 million goal.”
At last accounting United Resources had raised about 25% of its $200 million capital goal.
Waite had not returned a call seeking additional comment. A call to Paul Lewis, CEO of San Diego Medical FCU and a member of the United Resources charter committee, also had not been returned.