Alloya, CenCorp Intend to Go Big
Go big or go home. Those five words outline exactly what is happening with the proposed merger of $1.8 billion Warrenville, Ill.-based Alloya with $1.5 billion Southfield. Mich.-based CenCorp. It’s a marriage of corporate credit unions that, if approved by CenCorp members and regulators, will produce an entity with assets of around $3.3 billion and 1,400 members.
That would place Alloya, which will be the name of the merged institution, in the top tier of corporate credit unions, along with other members of the $3 billion club (Columbus, Ohio-based Corporate One, Irondale, Ala.-based Corporate America and Middletown, Pa.- based Mid-Atlantic).
For his part, Walby, in an interview with Credit Union Times on the day of the merger announcement, said, “We are in a scale business. Check processing is losing value. We can get much more efficient if we put the back offices together.”
“We will look at other mergers,” he added. He stressed that the top priority on his to-do list will be securing the needed approvals for the Alloya-CenCorp merger and planning an efficient integration of staff and services, but he left it clear that more mergers may well be in the Alloya plans.