The League of Southeastern Credit Unions & Affiliates (LSCU), which serves credit unions in Florida and Alabama, and the New York Credit Union Association (NYCUA) said they have "amicably agreed" to suspend a previously planned collaborative partnership between the two entities.
In October of last year, LSCU and NYCUA had signed a letter of intent to combine many of their operations into a jointly owned subsidiary — League Consolidated Services (LCS) — that would house all of their back-office functionalities and other duties that are not state-specific. Ultimately, the two entities planned to become "fully integrated" by January 1, 2017.
LCS would have been jointly owned and managed by both leagues.
However, at the close of a joint planning retreat last week in New Paltz, N.Y., both boards decided to scrap the plan, citing that such a realignment could not be achieved at this time and to suspend further integration.
"The leadership and staff of both organizations have worked extremely hard during the last year to make this vision a reality," said LSCU & Affiliates President and CEO Patrick La Pine in a statement. "Unfortunately, culture trumps strategy, and we were not able to move the project forward."
La Pine added that he stills believes "strongly in the collaborative LCS model."
Similarly, NYCUA president and CEO Bill Mellin stated that "we're all disappointed that this partnership did not come to fruition, but the opportunity to work through the process will make us much more prepared for future partnerships and collaborations."
Both leagues declined to provide further details.
Based in Tallahassee, Fla,., LSCU represents 270 credit unions in Alabama and Florida with a combined total of $71 billion in assets and more than 7.1 million members.
Based in Albany, N.Y., NYCUA represents 375 credit unions, comprising $72 billion in assets and about 5.3-million members.
