Texas League Debuts Merger Service
The Texas Credit Union League debuted its matchmaker service this week to aid credit unions with mergers.
League officials stress that the free service-offered through subsidiary Credit Union Resources Inc.-is not designed to encourage mergers but to serve as an option to current costly offerings.
"We've had inquiries recently from some of our members about developing such a program and based on the feedback, we decided it is something we could do," said Michael Delker, TCUL vice president of credit union relations.
The league said once the CU signs on, CUR arranges for introductory talks between potential partners and facilitates execution of confidentiality agreements.
"CUR will disengage from the process following introduction of the parties," according to CUR. However, CUR's engagement beyond the initial process "if requested by either party, will be on a 'for fee' basis defined under terms of a contract."
Texas league officials said they were unaware of any other league offering a similar formalized process but the service is limited to Texas CU members.
CUs interested in prospecting potential merger partners can register on at TCUL's Web site: www.tcul.coop/merger_assistance_program.html.