by
Catalyst Corporate | Dec 18, 2023
Total Capital Return to Approximate $24 Million
Catalyst Corporate announces that its Board of Directors and the National Credit Union Administration have approved the call of 12.5% of the outstanding balance of its perpetual contributed capital (PCC) shares as of December 31, 2023.
The total return of capital will be approximately $24 million. Funds will be distributed on a pro-rata basis January 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 Bruce Fox, Catalyst’s President and Chief Executive Officer. “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 said. “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 November 30, 2023, Catalyst has 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%. These ratios are approximately double the NCUA’s regulatory requirements for a well-capitalized corporate credit union.
Catalyst has approximately 1,090 credit unions with PCC account balances. The organization serves credit unions in 49 states with payments, asset management, risk management and liquidity management solutions.
For more information on the PCC redemption, please contact Catalyst’s Executive Vice President of Member Relations Greg Moore or our Chief Financial Officer Melissa Wardell.