PLANO, Texas – Catalyst Corporate FCU is reporting its board and NCUA have approved the call of 12.5% of the outstanding balance of its perpetual contributed capital (PCC) shares as of Dec. 31, 2023.
According to Catalyst Corporate, the total return of capital will be approximately $24 million. Funds will be distributed on a pro-rata basis Jan. 1, 2024, to credit unions with PCC balances at Catalyst.
“We are pleased to be the first corporate credit union to request and receive permission from the NCUA to return a portion of its PCC back to its capital shareholders,” said CEO Bruce Fox. “The redemption of PCC shares is the result of the organization’s strong financial performance the last 12 years, made possible by members’ and clients’ commitment and active participation in Catalyst services.
“PCC members will benefit from the return of capital,” Fox added. “And now, all credit unions – whether capitalized or not – can take advantage of Catalyst solutions, such as instant payments through the FedNow Service.”
As of Nov. 30, Catalyst reported it had total PCC of $191.8 million and retained earnings of $239.7 million, resulting in a regulatory leverage ratio of 9.88% and a retained earnings ratio of 5.62%. The corporate noted those ratios are approximately double the NCUA’s regulatory requirements for a well-capitalized corporate credit union.
More Than 1,000 CUs
Catalyst Corporate has approximately 1,090 credit unions with PCC account balances and serves CUs in 49 states with payments, asset management, risk management and liquidity management solutions.
For info: Catalyst's Executive Team.
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