Georgia Central Considered As Southwest Merger Partner
The $2.3 billion Georgia Central Credit Union may be the front runner to take over the NCUA-conserved Southwest Corporate Bridge FCU of Dallas.
In a website update posted Monday, the Texas chairman of a 13-member CEO panel advising the NCUA and Southwest's interim management on business models and how to proceed, said the recommendation to select Georgia Centrail as a business partner will be acted upon next Tuesday.
In a message to Southwest members, Kerry Parker, chair of the executive committee of the 140-member Southwest advisory panel, wrote that the panel had evaluated various alternatives and benefits choosing Georgia Central of Duluth, as the consolidation partner.
Parker, who also is president/CEO of A+ FCU of Austin, cited several reasons for the recommendation including no need for a processing conversion, a clean balance sheet with no legacy assets, a solid running platform and retention of governance by Southwest Bridge members.
Moreover, headquarters and operations would remain in Plano, a Dallas suburb, and there are "similar cultures with strong member credit union focus."
If effected, any consolidation between Georgia Central and Southwest would require NCUA approval. Parker noted that other combinations with other corporates might be in the offing.
"This business model provides a platform for future corporate consolidation," she wrote. "A couple of other corporate credit unions have already expressed interest in consolidating with Georgia Central and Southwest Bridge Corporate after the consolidation of Georgia Central and Southwest Bridge in mid-2011."
Parker said the executive committee met three times over the past few weeks.
"The committee reviewed research on six potential business models already completed by management prior to conservatorship, discussed the pros and cons of the business model options, and after careful consideration of each model the committee will recommend a final business model," she wrote. That will take place on Nov. 30.