Alloya Corporate FCU says its plan to merge with Michigan-based CenCorp is on track and it hopes to complete the combination by year end, according to CU Journal.
The corporate credit union has submitted its plan to the NCUA and hopes to receive regulatory approval to proceed with the merger late in the fourth quarter of 2012 or early in 2013.
“Most of the planning for the merger has been completed and we are now engaged in the regulatory review and approval process,” said Charles Furbee, president of the $1.7-billion corporate, in a “transparency report” to members.
Alloya is the remnant of Members United, a one-time $14-billion corporate and one of five corporates that failed and were placed into conservatorship by the NCUA. Alloya’s Sept. 27 transparency report shows a much slimmed-down corporate from a year ago, when it still held $8 billion of credit union funds.
The merger with Central Corporate CU, which holds $1.5 billion in assets and serves 300 credit unions, would create a corporate serving 1,400 credit unions nationwide – 20 percent of the country’s credit unions – but focused in a 10-state region from the Midwest to the East Coast.
Given the geographic distribution of the combined memberships, the boards envision significant operations to remain in Alloya’s current locations of Warrenville and Albany, N.Y., as well as CenCorp’s offices in Southfield. A spokesman added that staff reductions are expected throughout the system over time as operations are consolidated, but most staff reductions would be done through attrition.
Alloya was chartered in 2011 by the Members Advisory Council of Members United Bridge, one of the bridge corporates established by NCUA after five corporate credit unions were conserved by the federal regulator. It serves more than 1,100 natural person credit unions with 165 employees.
CenCorp was chartered in 1937 by the Michigan Credit Union League shortly after the league’s founding. Throughout its history, it passed back and forth between MCUL and independent control. It serves more than 300 natural person credit unions with 50 employees.