The $3 billion Catalyst Corporate FCU announced Oct. 29 the completion of itspurchase and assumption of the Phoenix-based First Corporate Credit Union, a so-called pass-throughcorporate that struggled to gain enough scale to replace servicesprovided by U.S. Central FCU.

The purchase and assumption agreement between the two corporatesand their regulators is unique because FirstCorp will retain itsexisting state charter for seven years without federal depositinsurance as its legacy assets either mature or are sold. Neitherthe investments nor $35 million in FirstCorp capital will betransferred to Catalyst.

“It was necessary to develop a plan that would insulateCatalyst’s membership from risks posed by the legacy assets on theFirstCorp balance sheet. Taking on any risk was not an acceptableoutcome for us,” said Catalyst President/CEO Kathy Garner.