METAIRIE, La.–The $563-million Jefferson Financial FCU is reporting it has completed the first funding installment of its NCUA-approved $12 million secondary capital plan.
The move marks one of the largest secondary capital requests approved by the NCUA, the company said.
The credit union that is raising the funds will use them to expand loan and deposit growth and increase earnings to drive future growth, according to CEO Mark Rosa.
“The growth in our balance sheet allows us to upgrade the suite of products and services we provide to our members,” Rosa said.
The 44,000-member, low-income designated Jefferson Financial worked with a CUSO, CU Capital Market Solutions (CMS), to develop a secondary capital plan, prepare its NCUA application and fund the capital. The second installment of Jefferson’s secondary capital will be provided by CMS through an exclusive arrangement with CU Secondary Capital Fund, the credit union said.
“The process of successfully applying for, securing and implementing secondary capital is much more involved and detailed than people realize,” Rosa said. “While low-income designated credit unions have historically had the ability to accept secondary capital, it has rarely been used as a strategic growth tool because the application and planning process is so difficult. However, CMS’ ‘turnkey’ approach, from application to implementation, turned a complex process into a seamless, efficient and successful endeavor.”
CMS CEO Lewis Lester added that consistent and reliable access to secondary capital allows the credit union movement to thrive and keep pace with the ever-expanding needs of members.
“Credit unions like Jefferson Financial, who have maintained strength and performed exceptionally well for members, especially through the financial crisis, can now utilize secondary capital to fully realize their growth potential,” he said. “CMS is excited to lead this initiative so credit unions can accelerate the momentum they have spent years building in local markets.”
For info: www.cucmsllc.com.