Southeast Corporate FCU Announces Recapitalization
TALLAHASSEE, Fla. – Southeast Corporate FCU, one of the largest surviving corporates, on Thursday announced it plans to raise $80 million in new capital and shrink its balance sheet by $1 billion as part of a recapitalization to meet NCUA’s new minimum capital standards.
The plan calls for Southeast, which had $2.8 billion in assets as of Sept. 30, to continue to work with other corporates and industry partners to consolidate back-office operations and processes to lower costs, increase efficiencies, and provide best of breed products and services.
Within one year, Southeast Corporate plans to reduce the size of its balance sheet by approximately $1 billion and raise $80 million in new Perpetual Contributed Capital to support a $2 billion balance sheet going forward. Existing Member Capital Shares will be returned to members at the end of the three-year notice period, less any additional Other Than Temporary Impairment not covered by retained earnings that the Corporate may need to take during this time period.
Southeast Corporate serves 400 natural person credit union members.