How serious are talks moving along about potential mergers among the corporates?
For the NCUA-conserved Southwest Corporate, there was one indication that there have been talks involving the $2.3 billion Georgia Central CU of Duluth.
In its October "Corporate Ink" newsletter, the president/CEO of Georgia Central, Greg Moore, in his "President's Perspective" column mentions behind-the-scenes discussions with an unnamed corporate which fell victim to the agency's Sept. 24 seizures.
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"It is known to many," he wrote, that the future business model chosen for Georgia Central by its planning groups "requires consolidation."
"It is further known that the optimal solution selected by our planning groups involves consolidation with another very large corporate credit union that has the infrastructure and scale to create significant efficiencies."
And it's probably "suspected," he went on, that the corporate CU was conserved in September.
"If so, you're right," Moore suggested. The CEO was not immediately available to elaborate on his comments and NCUA officials said they had received no merger application.
Southwest Corporate along with Members United Corporate FCU, Warrenville, Ill., were the two conserved corporates on Sept. 24 along with Constitution Corporate FCU of Connecticut.
"What I want to convey to Georgia Central's members first is that these developments do not impede our momentum for pursuing our chosen strategy," Moore wrote. "With the establishment of bridge corporates to house good assets and the payments infrastructure for as long as 24 months, NCUA flexibility about how credit unions can choose to make the post-conservatorship future, there continues to be ample opportunity for Georgia Central to effect a consolidation" that will prove robust and productive, he said.
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