On April 4 the members of $1.4 billion Central Corporate CU (CenCorp) voted in favor of the proposed merger with $1.4 billion Alloya Corporate FCU (Alloya). This follows the NCUA’s approval of the merger on March 14, 2013. The effective date of the merger is April 30, 2013.
“This merger adds 300 members to Alloya’s current membership, plus significant scale,” noted Charles W. Furbee, Alloya’s current CEO. “Alloya is well positioned for continuing success.”
“We are excited about the synergies that the merger brings,” stated William A. Walby, current CEO of CenCorp and slotted to be Alloya’s CEO after the merger. “Members saw additional value in combining two strong credit union-owned organizations to deliver their financial and correspondent service needs into the future.” As the synergies are realized, the annual expenses of the combined institution are expected to fall by several million dollars, while adding products and features. The increased scale will create additional opportunities.
The combined institution will conduct business in ten core states, providing investment, financial, lending, and correspondent services to more than 1,400 member-owner credit unions. Headquartered in Warrenville, IIL, Alloya will also conduct major operations from offices in Southfield, Mich. and Albany, NY.
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.
Southfield-based Central Corporate CU 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.