NCUA Approves CenCorp-Alloya Merger (Misc News: March 18, 2013)
The NCUA has given its approval of the merger between CenCorp and Alloya Corporate.
Alloya CEO Charles Furbee said in a letter to members dated March 14 on its website that the next step will be for CenCorp’s members to vote. CU Times reported that CenCorp has 330 members.
The merger vote is scheduled for April 4. If approved, the merger would be completed by the end of April.
“Cencorp members would convert to Alloya Systems later this year,” Furbee said in the letter.
But he added that some anticipated system changes to accommodate CenCorp practices would result in enhancements for other members.
“Alloya believes that a merger with CenCorp will bring significant additional value to members through increased scale, elimination of redundancies and additional financial strength,” he said.
Alloya members will have the opportunity to learn more about the merger during the corporate’s webinar on Thursday, March 28.
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.
The merger with CenCorp 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.
CU Times reported that the consolidation would push the surviving Alloya’s assets to nearly $3 billion, making it roughly the same size as the $2.7 billion Catalyst FCU of Plano, Texas. Only the $4.2 billion Corporate One FCU of Columbus, Ohio, would be larger.
Southfield-based Central Corporate CU was chartered in 1937 to serve Michigan credit unions soon after the formation of the league. CenCorp passed back and forth between league and independent control and was housed in the league offices for many years.
Click here to read Furbee’s letter and learn more about the transparency webinar, which will include a high-level discussion of the merger.