WARRENVILLE, Ill. -- Members of $1.4 billion CenCorp CU voted overwhelmingly today in favor of the proposed merger with $1.4 billion Alloya Corporate FCU, the eighth corporate merger in the last two years but first since last October.
The CenCorp deal adds 300 credit unions to Alloya’s membership and creates the third biggest corporate by assets. The deal was approved by NCUA last month.
Alloya represents the conglomeration of several former corporates, including two failures, Members United Corporate FCU and Constitution Corporate FCU, as well as Empire Corporate FCU and the Massachusetts-based Central CU Fund.
“We are excited about the synergies that the merger brings,” stated William. Walby, president of CenCorp and slotted to be Alloya’s CEO after the merger. “Members saw additional value in combining two strong credit union-owned organizations to deliver their financial and correspondent service needs into the future.”
As the synergies are realized, the annual expenses of the combined Corporate are expected to fall by several million dollars, while adding products and features. The increased scale will create additional opportunities.
The combined Corporate will conduct business in ten core states, providing investment, financial, lending, and correspondent services to more than 1,400 member-owner credit unions.
Headquartered in Warrenville, Illinois, Alloya will also conduct major operations from offices in Southfield, Michigan and Albany, New York.
The CenCorp deal is Alloya’s third merger during the corporate shakeout of the past two years. During that time, Catalyst Corporate FCU, the remnant of another corporate failure, Southwest Corporate FCU, has acquired Georgia Corporate FCU, FirstCorp CU and the remnants of WesCorp FCU. In addition, Corproate One FCU has acquired Southeast Corporate FCU; MidAtlantic Corporate FCU has acquired Virginia Corporate CU; and Volunteer Corporate has merged with West Virginia Corporate and Montana's Treasure State Corporate with Kansas Corporate.
