Pending regulator approval, the purchase and assumption of the $1 billion First Corporate Credit Union by the $2 billion Catalyst Corporate Federal Credit Union will be official Oct. 29.
Nearly all FirstCorp members voted to approve the P&A Aug. 17 in the Phoenix corporate’s headquarters, the organization said.
“We proposed this type of consolidation with Catalyst because it offers many benefits to our member credit unions, and I’m pleased to announce today that we have taken a major step forward toward completing the transition to Catalyst,” said David Doss, chairman of FirstCorp and president/CEO of the $1.35 billion Arizona State Credit Union, located in Phoenix.
“All the members support this concept of a sustainable model, which will allow us to continue to enjoy low-cost, comprehensive wholesale financial services well into the future,” Doss said.
The transaction, first announced May 9, will involve Catalyst’s purchase and assumption of certain FirstCorp assets and share accounts. However, legacy assets will remain in the FirstCorp charter until they mature or are sold.
According to FirstCorp’s 2011 annual report, as of Dec. 31, 2011, it had $28.8 million worth of Perpetual Contributed Capital on the books.
The corporates said in a release that they do not anticipate any obstacles to approval of the P&A by the NCUA or the Arizona Department of Financial Institutions, as it benefits members, regulators and the share insurance fund.
Catalyst now has the green light to offer FirstCorp members PCC, which is required for membership. FirstCorp members have until Oct. 26 to make that purchase.
The Plano, Texas-based Catalyst said back in May that the consolidation will be seamless for FirstCorp members, because it can duplicate all FirstCorp products and services, and the corporate has recent experience merging in the back office operations of both Georgia Central Credit Union and Western Corporate Federal Credit Union back office operations.
FirstCorp members faced a Sept. 30 deadline to find another ACH provider, as U.S. Central Bridge FCU will discontinue its APEX-ACH service in anticipation of closing for good by the end of this year.