TALLAHASSEE, Fla.-After proposing the idea earlier this year, boards of the Florida and Alabama credit union leagues have submitted a consolidation plan for their two organizations for a vote by their memberships.
If approved, the consolidated entity would create an organization representing 332 CUs with total assets of $55 billion.
The boards of the Alabama CU League and the Florida CU League voted Dec. 8 and 9 respectively to propose a consolidation of the two groups under the name "The League of Southern Credit Unions (LSCU)." The next steps in the approval process entail communicating the details of the consolidation plan through a series of town hall meetings, as well as face-to-face meetings with individual CUs in both states throughout January and February. League members will vote on the proposal at specially called membership meetings in early March.
Throughout the past five months, the two chairmen-Rich Helber of the Florida CU League, and Steve Sworfford of the Alabama CU League-have expressed their agreement that consolidation would give credit unions a bigger voice in the political deliberations in the state capitals of Montgomery and Tallahassee, respectively, in addition to Washington. Just as importantly, at a time of consolidation among credit unions themselves the two leagues are projecting cost efficiencies of at least $1 million per year.
"I believe pressure will continue to increase," said Guy Hood, president/CEO of the Florida CU League. "We have to look at ways to be more cost-efficient. By consolidating, we can do this."
Hood, and Gary Wolter, CEO of the Alabama CU League, are both expected to retire between April and June of 2009. One CEO will replace them.
"Other staff is retiring, so that should sort itself out," Hood said. "I don't expect an adverse affect of staff for the consolidation."
What won't change, Hood told Credit Union Journal, is "our strong advocacy," and the current brands and logos, which are expected to be continued to be used in the respective states.
"Everything else will take on a new brand," Hood said.
Each league itself currently has about $7 million in assets, so the merger will allow for the new consolidating league to have about $14 million in assets, Hood said.
The consolidation is expected to be finalized in early March if members vote in favor. As for location, "it will be a new company-an Alabama corporation, but headquartered in Florida," Hood said. "In the beginning it will be here in Tallahassee. If that changes, it will be a decision of the new CEO and new board."
The Alabama's CU League's leased space in Birmingham will still exist, Hood noted, and will house support staff.
"I don't know what the exact employee count will be in each location," he said.
