When Catalyst Corporate FCU outlined its new business plan in 2011, it had high hopes for the future of the organization, but few would have guessed how quickly it would attain its preliminary goals, president/CEO Kathy Garner told attendees at Catalyst Corporate's recent 2nd annual meeting.
When Catalyst Corporate FCU outlined its new business plan in 2011, it had high hopes for the future of the organization, but few would have guessed how quickly it would attain its preliminary goals, president/CEO Kathy Garner told attendees at Catalyst Corporate’s recent 2nd annual meeting.
Garner cited examples in her review of the corporate’s 2012 activities and financial performance:
Two successful consolidations. In July and October of 2012, Catalyst Corporate welcomed members of the former Western Bridge Corporate and FirstCorp, employing innovative acquisition strategies that will benefit all of its member credit unions.
Membership growth. During 2012, Catalyst Corporate increased its total membership to nearly 1,300 capitalizing credit unions, up from approximately 900 members at inception. Catalyst Corporate now has members in 21 states.
Financial achievement. In 2012, Catalyst Corporate exceeded its projections for financial performance and efficiency, with net income of $13.9 million and under-budget operating expenses. Catalyst Corporate’s coverage ratio was in line with its 88 percent target – meaning that 88 percent of expenses was covered by fee income. Garner said this high degree of efficiency has the effect of reducing reliance on the balance sheet.
Stability. By year-end 2012, Catalyst Corporate recorded approximately $160 million in perpetual contributed capital and a leverage ratio of 7.75 percent, exceeding the NCUA’s current requirement of 5 percent to be considered “well-capitalized.” The corporate is also substantially ahead of plan on the achievement of the 2013 retained earnings ratio target, with a retained earnings ratio of 86 basis points, compared to the 45 basis points NCUA requires by October 2013.
Garner noted that deepening member relationships and establishing more meaningful member feedback had been a key goal since she came on board as CEO in March 2012. This has been accomplished over the past year, she said, through attendance by Garner and her management team at credit union events, through meeting with the Catalyst Councils – three regional groups founded to channel member feedback into Catalyst Corporate’s planning efforts – and through member surveys.
Catalyst Corporate also made a strong commitment to transparency in 2012, Garner said. This resulted in the organization publishing throughout the year detailed financial results and a “score card” that charted progress toward achievement of business plan goals. In late 2012, Catalyst Corporate fine-tuned the information that was already available in the Due Diligence section of its website and rolled it into one comprehensive Due Diligence Report, which is now updated and published quarterly.
At the meeting, Catalyst Corporate held elections to fill expiring terms on its board of directors. Members elected to three-year terms were: Bill Before, STCU, Liberty Lake, WA; Syed Dinar, Texas Bay Area CU, Houston, TX; Lin Hodges, Associated CU, Norcross, GA; and John Papagno, Alive CU, Jacksonville, FL. Elected to a one-year term was Trevor Tokishi, Valley Isle Community FCU, Kahului, HI.
Handouts and a recording of Catalyst Corporate’s annual meeting are available at catalystcorp.org/annualmtg.aspx. Catalyst Corporate’s 2012 annual report and audited financials are available at catalystcorp.org/duediligence.aspx.