Catalyst Corporate Tops 1,000 Members
March 6, 2012
March 6, 2012
Only six months after its inception, the number of credit unions that have capitalized Catalyst Corporate Federal Credit Union has grown to more than 1,000.
Catalyst Corporate hit the 1,000 mark last week as a flurry of credit unions continued the process of submitting paperwork to authorize capital contributions to the Plano, Tex.-based corporate credit union. Catalyst ended the week with 1,012 members that have collectively provided more than $114 million in capital funding.
“The 1,000-credit union mark is mostly significant inasmuch as it indicates that Catalyst’s low capitalization levels and breadth of cooperative-priced services appeals to credit unions,” said Kathy Garner, the new president/CEO of Catalyst Corporate and member of the Northwest Credit Union Foundation board of directors.
Garner said it is noteworthy that more than 100 of the newest Catalyst members are recent converts from Western Bridge Corporate Federal Credit Union.
“While credit unions from all parts of the country have joined Catalyst Corporate, there has been a surge of Western Bridge members making the transition,” Garner said. She went on to note that Catalyst executives had met “hundreds of credit union officials from Western Bridge credit unions during our recent series of 20 town hall meetings.”
Garner explained that the town hall meetings were a follow-up to the National Credit Union Administration’s (NCUA’s) December announcement that Catalyst Corporate was selected to acquire the operations of Western Bridge Corporate Federal Credit Union. The NCUA’s decision put into motion a plan that provided a non-disruptive, low-cost transition for Western Bridge member credit unions.
“One of the key points that we share with attendees is the way in which the model allows the corporate to maintain a low-risk balance sheet while building retained earnings sufficient to meet future regulatory requirements,” Garner said. “Catalyst Corporate’s efficiency will ensure that the corporate will thrive financially, meet all of the capital and retained earnings objectives, and continue to be innovative in the delivery of services.”
Garner stated that Catalyst Corporate, a Strategic Link Annual Sponsor of the Northwest Credit Union Association (NWCUA), is already exceeding many of the financial measures included in its business plan, such as the coverage ratio, the key measure of efficiency.
“Our coverage ratio expectation was high—an 87-percent estimate used in our business plan compared to an industry average of about 55 percent,” she said. “We were delighted when we realized Catalyst had achieved 94.1 percent for the September-December 2011 period.”
Catalyst’s efficient model is designed to be less dependent on member-contributed capital over time, as a result of strong growth in retained earnings, Garner explained.
“Attendees are pleased to learn that Catalyst’s membership capital requirement is a one-time occurrence with no future adjustments.”
Strategic Link is the NWCUA’s wholly-owned service corporation, providing the Association’s member credit unions with exclusive high-quality, competitively-priced products and discounted services. Questions? Contact Sales & Marketing Associate Craig Reed: 206.340.4789, email@example.com.
Posted in Federal.