Alloya Corporate FCU and Central Corporate Credit Union announced Tuesday that their respective boards have signed a non-binding letter of intent to merge the two corporates.
If the merger proceeds to consummation, the result would “serve nearly 20% of the nation’s credit unions,” said the pair in a joint press release.
There are hurdles to jump before a merger is concluded, including approval by the NCUA and, before that, the two corporates said they will both will do “due diligence.”
Especially interesting is that announcement noted that, in the bargain, Bill Walby, current chief executive officer of CenCorp, would become the CEO of Alloya, which would continue as the name of the combined entity. For some months, Alloya has conducted a search to replace its present CEO Chuck Furbee, who has long indicated a desire to retire.
Alloya would also keep its headquarters in Warrenville, Ill., where it presently is located. It is envisioned that it also would maintain offices in Albany, N.Y., where many Alloya staff presently are based, and also in Southfield, Mich., the suburban Detroit headquarters of CenCorp.
In a press statement, Walby said, “While very successful in its own right, the current and future operating environment for corporates has prompted CenCorp to consider alternatives, including merger, that would enhance member value and better serve its members. A merger with Alloya would create enhanced value for both memberships in the form of significantly increased scale, additional revenue growth, reduced operating costs, and additional financial strength.
Furbee, in the same statement, said, ““With the enactment of the amended corporate regulations in 2011, corporates have needed to orient their business plans to the new paradigm. This merger would result in a corporate credit union with core markets in 10 states. With a strong reputation for service through a local presence in the regions served, the combined corporate will be staffed by an experienced team that is dedicated to serving the needs of the membership first and foremost.”