COLUMBUS, Ohio – Corporate One FCU announced this afternoon plans to merge with Southeast Corporate FCU, the $3 billion Florida-based corporate that failed last month in its bid to recapitalize.
Both corporates have national fields of membership with primary markets in the Great Lakes and Southeast regions. Corporate One, based in Columbus, Ohio, is one of the few big corporates to survive the corporate meltdown and has $4.9 billion in assets and 775 members. Southeast has $3 billion in assets and serves 400 credit unions.
The tentative merger agreement, which is subject to NCUA approval, comes just two weeks after Southeast failed in its effort to raise $80 million of new capital to meet NCUA's new minimum capital rules, and said it was seeking a merger mate insteda.
“There are exceptional synergies between the two organizations with priorities focused on needed products and services coupled with an opportunity for greater efficiencies. The people at Southeast Corporate share Corporate One’s traditional core principles and the combination of the two organizations will offer even more value to all of our members,” said Jerry Guy, president of Kemba Financial CU and chairman of the Corporate One board.
According to Lee Butke, president/CEO of Corporate One, “The combination of Southeast Corporate and Corporate One is a natural fit. This partnership provides for a financially stronger corporate, along with operational efficiencies that will create long-term value for both memberships. This is truly a winning combination.”
“Our objectives in finding a merger partner remain the same as in all our efforts – to protect and preserve member capital, maintain continuity of services, and create long-term value for members. A partnership with the financial and operational strength of Corporate One allows us to ensure these objectives are met,” said Brad Miller, president of Southeast Corporate.
The combination is the latest of several corporate mergers in the works, including Southwest Corporate FCU with Georgia Corporate FCU; Mid-Atlantic Corporate FCU with Virginia Corporate FCU; Corporate America CU (Alabama) with Louisiana Corporate CU; and Volunteer Corporate CU (Tennessee) with West Virginia Corporate CU.
