WARRENVILLE, Ill. – Alloya Corporate FCU says it has submitted its application for the previously announced merger with CenCorp CU and hopes to complete the combination by year end.
“Most of the planning for the merger has been completed and we are now engaged in the regulatory review and approval process,” said Charles Furbee, president of the $1.7-billion corporate, in a “transparency report” to members. He said the corporate hopes to receive regulatory approval and proceed with the merger late in the fourth quarter of 2012 or early in 2013.
Alloya is the remnant of Members United, a one-time $14-billion corporate and one of five corporate failures. Alloya’s Sept. 27 transparency report shows a much slimmed-down corporate from a year ago, when it still held $8 billion of credit union funds. It reported $199,000 in net income for June, down from $815,000 for June 2011; and $2.9 million of net for the first half of the year, down from $10.1 million the same period the prior year, and assets of $1.7 billion.
The merger with CenCorp, which has $1.5 billion in assets and serves 300 credit unions, would create a corporate serving 1,400 credit unions nationwide, but focused in a 10-state region from the Midwest to the East Coast.
After a flurry of corporate mergers last year, this is one of just two in the works, along with Catalyst Corporate’s plan to merge with Arizona’s FirstCorp.