PLANO, Texas-In the first of what is expected to be numerous mergers among surviving corporate credit unions, the advisory council of Southwest Bridge Corporate approved a plan to merge the corporate shell and its national field of membership into Georgia Corporate FCU, known until a charter change last month as Georgia Central CU.
One Of Six Options
The merger was one of six potential business options being considered by Southwest Corporate FCU before the one-time $12 billion corporate was placed into conservatorship and stripped of its troubled investment portfolio by NCUA, creating one of four so-called Bridge Corporates, maintaining non-investment services to credit unions.
Georgia Corporate is a $2.3 billion corporate based in the Atlanta suburb of Duluth, Ga.
Kerry Parker, chairman of the Southwest Bridge Corporate executive committee and CEO of A+ FCU, told Credit Union Journal that 110 credit unions participated in a conference call and 86% voted to go forward with presenting the proposed merger plan to the more than 1,400 credit unions that are members of Southwest. A date has not been set for that vote.
Southwest was one of three corporates seized by NCUA Sept. 24, along with Members United Corporate FCU and Constitution Corporate FCU, joining U.S. Central FCU and WesCorp FCU, among the five corporates being operated under conservatorship.
Merger Of Equals
Parker emphasized the plan presents a merger of equals. There will be a new name and board, and that new board will choose the new CEO. A large percentage of the operations will remain in Plano. If approved by member credit unions, the goal is to submit a merger plan to NCUA by February, Parker said.
