First Carolina Corporate Credit Union in Greensboro said Friday that it raised $60 million in new perpetual contributed capital, becoming the latest corporate to successfully complete a recapitalization.
The $1.7 billion-asset credit union said the offering would allow it to meet the National Credit Union Administration's new 4% net capital requirement and allow it to move ahead.
The recap follows the recent announcement by EasCorp Federal Credit Union that it had completed a new capital offering and reached the NCUA's minimum capital threshold.
"Given the PCC raised and our estimated average assets, we expect to be in full compliance with NCUA's regulatory requirements for capital and net economic value well before the October 2011 deadline," said David Brehmer, First Carolina's president. "It's a strong sign that our members want First Carolina to be their corporate credit union into the future."
First Carolina had set a target of raising $60 to $75 million and, thus far, has received confirmation from 134 member credit unions that their recapitalizations were approved by their boards.
Of the amount committed, $39.1 million represents new investments and $21.5 million signifies conversions of existing membership capital share deposits.