In an attempt to achieve economies of scale, the $2.2 billion Catalyst Corporate FCU and the $1.1 billion First Corporate CU announced on May 9 that the two have signed a nonbinding letter of intent to consolidate through a purchase and assumption transaction later this year.

“Since the early planning stages, Catalyst has promoted the reality that corporates must be able to achieve scale in this new operating environment in order to thrive,” said Lin Hodges, Catalyst Corporate chairman and president/CEO of the $1.3 billion Associated CU in Norcross, Ga.

The consolidation will follow the completion of the Plano, Texas-based Catalyst's acquisition of the Western Bridge Corporate operations on July 1. FirstCorp's board of directors has voted to have Catalyst Corporate take on processing of the Phoenix-based corporate's member ACH in advance of the full conversion.