Catalyst Corporate Closer To Reality As It Places PCC Into Escrow
DULUTH, Ga.-Georgia Corporate FCU and Southwest Bridge Corporate FCU, which plan to merge and form Catalyst Corporate, reported they have transferred members' pledged Perpetual Contributed Capital into escrow, a sign the planned merger will "succeed," the corporates said.
"Together we have raised $91.3 million in PCC," said Greg Moore, president/CEO of Georgia Corporate in a statement. "And perhaps more importantly-these capital pledges represent more than 865 subscribing members. We are very pleased with this level of support from our members."
To date, approximately 74% of the previous capital shareholders of the two corporates have come on board as capitalizing members of Catalyst Corporate, the two corporates reported.
Southwest Bridge Corporate President/CEO Dianne Addington said in a statement that "Catalyst Corporate represents this low-risk value proposition by minimizing the amount of capital a credit union puts at risk, and by minimizing the risk we take with those assets." Addington added that Catalyst Corporate's model balance sheet is more conservative than what is required by the new Regulation 704.
Next up for the planned merger is NCUA approval of the merger application. If approved, the consolidation will take place Sept. 6.