In the latest example of consolidation among corporate credit unions, the boards of directors for both Mid-Atlantic Corporate Federal Credit Union, Middletown, Pa., and First Carolina Corporate Credit Union, Greensboro, N.C., said they have agreed in principle to combine their organizations in a “merger of equals” that would continue the trend of corporate consolidation.
If the merger is approved, Jay Murray, Mid-Atlantic Corporate’s president and CEO, would serve as CEO, while David Brehmer, First Carolina Corporate’s president and CEO, would be the new entity’s president.
The two current corporates said the consolidated corporate CU will have a new name and will retain offices in Pennsylvania and North Carolina. The new entity’s board of directors would have equal representation from the two existing corporates, they said.
Pending required approvals from NCUA and North Carolina regulators, the two corporates said their members are expected to be asked to approve the merger some time in 2016.
The proposed combination is only the latest maneuver in the corporate credit union space, following the announcement that
In February,
In summer 2014,
‘Intense Competition’
Michael Pastirik, chairman of the Mid-Atlantic Corporate board, said in a statement, “At the heart of our decision to combine corporates is a belief in the cooperative model, which involves working together for the common good. Given the intense competition from banks, non-banks and online services, we are convinced that combining forces will ensure a cost-effective operation, as well as scaled economies from higher volumes and the opportunity to attract additional member credit unions.”
Bob Bruns, chairman of First Carolina Corporate, also expressed the belief that working in tandem is a step in the right direction for the corporate credit unions.
“With our shared strengths and resources, we will be able to help credit unions remain competitive in a rapidly changing financial and technological environment,” Bruns said. “That is important because, going forward, credit unions need secure, innovative delivery systems and high-quality, low-cost financial products to meet their members’ growing demand for easy-access, 24/7 service.”
“Mid-Atlantic Corporate and First Carolina Corporate have had an excellent working relationship for many years,” said Murray of Mid-Atlantic Corporate. “We have collaborated on various projects, participated in regional conferences and helped each other promote the common good among member credit unions. The combining of our organizations leverages First Carolina Corporate’s balance sheet strategy and Mid-Atlantic Corporate’s payment and information technology solutions, creating a powerful force for financial service delivery and enables us to offer an unparalleled menu of high-quality financial products and services to member credit unions.”
First Carolina Corporate president/CEO Brehmer, agreed: “Working together, we see a bright future for our combined membership. It is rare to find two entities whose core values are so in sync, and whose organizational strengths and management complement each other so well. Both corporates are stable, have strong balance sheets and have successfully rebuilt capital. By merging from a position of strength, we’ll be able to build on our shared resources, staff talent and expertise, and mutual belief that collaboration is the best recipe for helping credit unions succeed.”
Mid-Atlantic Corporate FCU is a $2.3 billion institution that serves CUSOs, leagues, chapters and more than 700 credit unions. Mid-Atlantic Corporate has a family of companies that provide investment, lending and payment services, including ACH, share draft and electronic bill payment, as well as core processing, asset liability management and risk management solutions. For more information, visit
First Carolina Corporate CU is a $1.4 billion institution serving more 200 credit unions in six states. It was founded in 1980. For more information, visit
