Alloya Corporate Federal Credit Union of Warrenville, Ill., the survivor of what was once Members United Corporate FCU, said Tuesday it has signed a letter of intent to combine with Central Corporate Credit Union of Michigan, creating the nation's largest corporate with almost $5 billion in assets.
The new corporate would serve almost 1,400 credit unions nationwide in a ten-state region from the Midwest to the East Coast and would continue under Alloya's name.
The combination is the latest in the consolidation of the corporate network which has seen seven mergers over the past year, whittling down the network from what was once 45 corporates, to what would be just 14.
"This merger would result in a corporate credit union with core markets in ten states," said Chuck Furbee, president of Alloya.
"A merger with Alloya would create enhanced value for both memberships in the form of significantly increased scale, additional revenue growth, reduced operating costs, and additional financial growth," said Bill Walby, president of CenCorp, based in Southfield, Mich.
Alloya, which represents the former Members United and Constitution Corporate FCU, has about $4 billion in assets and serves 1,100 credit union. CenCorp has $1.5 billion in assets and serves 300 credit unions.
The merger is subject to approval of CenCorp's members and NCUA.
The past few months have been witness to an accelerated consolidation of the corporates, with Corporate One merging with Southeast Corporate; Southwest Corporate with Georgia Corporate; Mid-Atlantic Corporate with Virginia Corporate; Volunteer Corporate with West Virginia Corporate and Montana's Treasure State Corporate with Kansas Corporate. A proposed merger of Alabama's Corporate America CU and Louisiana Corporate CU is still pending.
The shakeout of the corporate landscape has also included the dissolution of U.S. Central FCU, WesCorp FCU and Constitution Corporate FCU.
