The directors of the Louisiana Bankers Association and the Community Bankers of Louisiana have agreed to merge into a single trade group to represent all banks in the Bayou State.
The merger awaits the approval of member banks and thrifts. Trade group leaders hope to have the deal finalized by yearend.
"In light of the hurricanes, now more than ever, we owe it to our banks to be as effective as possible, as efficient as possible, and as focused as possible," said Peter K. Gwaltney, the chief executive officer of the Louisiana Bankers Association. "This merger helps us do that."
By pooling the resources of all banks in the state into a single trade group, which would be called the Louisiana Bankers Association, representatives would be able to advocate for the interests of Louisiana banks in a more focused and efficient manner, Mr. Gwaltney said.
Dan Digby, the president of the Community Bankers of Louisiana, said the proposed merger "means one voice for the banking industry in the state Legislature and one voice in Washington, D.C."
The merger would be at least the ninth between state bank and thrift trade groups since 2000; such mergers reflect the broader trend of consolidation within the banking industry. Bank and thrift trade groups in New Jersey are also considering a merger.
The Louisiana Bankers Association has 168 members, while the community bankers group has 85.
Mr. Digby estimates that 75 of the community group's members are also members of bankers group.
The trade groups are already closely associated. They have coordinated lobbying efforts, combined their members' health-care benefits into a single plan, and even scheduled meetings so they do not overlap.
But the interests of the two groups are not always aligned, Mr. Gwaltney said.
"We compete for members' time to go to our meetings, and we compete for their contributions to our PACs," he said.
The merger would eliminate such conflicts, Mr. Gwaltney said.
The trade groups began discussing a merger in March, but the destruction caused by hurricanes Katrina and Rita accelerated the talks.
"It showed us how much work there was to do, and that if we duplicated each other's efforts it would be fruitless," Mr. Gwaltney said.
He will be the new group's president, while Mr. Digby will head its for-profit corporation, where his responsibilities will include managing the insurance unit and organizing conventions and management conferences.
