The NCUA board, meeting behind closed doors, approved Thursday the merger of Corporate One with Southeast Corporate, according to a statement jointly issued by the corporates.
In that statement, the corporates reviewed the history of their merger effort: “On September 13, 2011 the corporates signed a letter of intent to merge, and on January 18, 2012, the corporates signed a definitive merger agreement, which governs the terms and conditions that binds the organizations together, and formalizes many of the merger details.”
The next step, per Lee Butke, CEO of Columbus, Ohio-based Corporate One, is a capital raise from present Southeast members who decide to continue with the merged entity. According to Butke, Southeast members will get information about the capital drive, along with a ballot to vote on the merger, within the next 10 days.
Butke emphasized that, per the plan submitted to the NCUA, post merger Corporate One will continue to operate present Southeast offices in Tallahassee and Jacksonville, Fla. “We believe that is the right thing to do,” said Butke in an interview. “Our aim is to make the transition smooth for Southeast members.”
In the prepared statement, Southeast Corporate CEO Brad Miller said. “From the beginning, it was critical to find a merger partner that fulfilled three guiding principles: protection of member capital, continuity of services and creating long-term value for our members. We’ve found that partnership with Corporate One. Our members are excited about the new potential we have as a stronger, combined organization. Without a doubt, this merger is a great opportunity for our members and we are anxious to bring the merger to a conclusion.”
Butke added that, after the merger is consummated, he expected Corporate One to have in excess of a quarter of a billion dollars in capital, between the PCC and retained earnings on the books.
“This will be a power-packed corporate that will be prepared to help its members grow,” he said.