The $2.5 billion Georgia Corporate Federal Credit Union cleared a key hurdle Tuesday in its bid to be a merger partner next year with the NCUA-conserved Southwest Bridge Corporate FCU of Plano, Tex.
Without making any formal comment, Georgia Corporate received an initial favorable vote of the 140-member Southwest CEO-member Advisory Council in a phone tally conducted under auspices of a 13-member executive committee and with NCUA approval.
NCUA officials have stressed that while it takes the suggestions of the ad hoc panels seriously it will eventually decide on possible merger partners for Southwest.
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"No action has been brought before NCUA," said John McKechnie, director of NCUA's office of congressional and public affairs, noting, the council "has no oversight authority over the bridge corporate–it is a facilitating body that helps provide a forum for Southwest membership."
Kerry Parker, chair of the Southwest executive committee, said 110 CUs participated in the Tuesday conference call and 86% voted to go forward with the proposed merger plan. A date for a final vote of the 1,400 Southwest members has not been set but the endorsement of the committee's work "is good news to us," said Parker, who also is president/CEO of A+ FCU of Austin, Tex.
As part of the Georgia Central package, some Southwest members that are the most active users will have to pony up additional capital contributions and discussion will continue on that issue at a series of town hall meetings slated for next year. The eventual plan if approved by all would be to effect a merger next June or July, Parker said.
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