COLUMBUS, Ohio – Corporate One FCU announced this afternoon that Southeast Corporate FCU fell a little short of its goal to raise $75 million in perpetual contributed capital but the combination of the two corporates will go through anyway with Southeast’s $68 million of PCC.
The merger will create one of the nation’s four largest surviving corporate credit unions, with almost $5 billion in assets and serving more than 1,100 credit unions across the country. The other three are Catalyst Corporate FCU of Texas, Alloya Corporate FCU of Illinois and Mid-Atlantic Corporate FCU in Pennsylvania.
Southeast’s new capital will give the combined entity a total of $213 million of PCC, allowing the newly formed corporate to attain NCUA’s category of “well capitalized” under the new corporate rules. "With a successful capital raise behind us, we can now focus on providing those solutions that our members need with the benefits that they deserve,” said Lee Butke, Corporate One’s president, who will head the combined entity out of Corporate One's Columbus headquarters.
Officials of Southeast Corporate, concerned with the shortfall in PCC, had extended the deadline for capital commitments from its members a whole month until June 29, in the hopes of reaching the $75 million goal. But today's announcement makes it clear they didn't reach their goal.
With the Southeast capital offering now closed, and with Southeast’s membership having voted to support the merger last month, the merger will become effective on July 1. Corporate One will shift its focus on integrations of systems and product solutions as quickly as can be done without causing disruption to its members.
