WARRENVILLE, Ill.-Alloya Corporate FCU, the survivor of the former Members United Corporate FCU, last week said it had signed a letter of intent to combine with Central Corporate CU of Michigan to create the nation's largest corporate with almost $5 billion in assets.
The new corporate would serve almost 1,400 credit unions nationwide in a 10-state region from the Midwest to the East Coast and would continue under Alloya's name. The combination is the latest in corporate consolidation, with seven mergers over the past year whittling down the network from 45 corporates, to what would be just 14. "This merger would result in a corporate credit union with core markets in ten states," said Alloya Presdient Chuck Furbee.
"A merger with Alloya would create enhanced value for both memberships in the form of significantly increased scale, additional revenue growth, reduced operating costs, and additional financial growth," said Bill Walby, president of CenCorp, Southfield, Mich.
Alloya, which represents the former Members United and Constitution Corporate FCU, has about $4 billion in assets and serves 1,100 credit union. CenCorp has $1.5 billion in assets and serves 300 credit unions. The merger is subject to approval of CenCorp's members and NCUA.
The past few months have been witness to an accelerated consolidation of the corporates, with Corporate One merging with Southeast Corporate; Southwest Corporate with Georgia Corporate; Mid-Atlantic Corporate with Virginia Corporate; Volunteer Corporate with West Virginia Corporate and Montana's Treasure State Corporate with Kansas Corporate. A proposed merger of Alabama's Corporate America CU and Louisiana Corporate CU is still pending.
