Missouri Corporate Credit Union has announced its board has voted to refund $2.6 million in excess capital commitments.
This comes on the heels of the corporate’s successful pursuit of a $17.5 million capital drive. All in, member credit unions had pledged $22.6 million. At a Sept. 22 meeting the Missouri Corporate board voted to cap the money drive and refund $2.6 million to current members.
In a statement, Missouri Corporate CEO Dennis DeGroodt said, “The support of our members was overwhelming and beyond expectations. It is unusual, especially for a corporate credit union, to return excess capital but that’s exactly what we are doing. Right now, our members need the funds more than we do.”
In an interview with Credit Union Times, DeGroodt added, “We determined we only needed $20 million, so we wanted to refund the extra.”
Refunds will range from $182 to $92,300.
DeGroodt indicated that even with this cash subtracted from the balance sheet, Missouri Corporate remains “adequately capitalized,” per NCUA definitions, with a leveraged capital ratio of 5.5%.
Missouri Corporate presently serves 124 natural person credit unions, although DeGroodt stressed that “new members are welcome to join.”