PHOENIX – Members of FirstCorp have officially approved a “unique consolidation” of the corporate into Catalyst Corporate FCU, Plano, Texas.
FirstCorp and Catalyst announced they are on schedule to complete the necessary transitions of products and services in time for the consolidation to take place as scheduled on Oct. 29, after FirstCorp members voted to approve the purchase and assumption of the majority of FirstCorp’s assets by Catalyst at a special meeting last week.
“We proposed this type of consolidation with Catalyst because it offers many benefits to our member credit unions, and I am pleased to announce we have taken a major step forward toward completing the transition to Catalyst,” said FirstCorp Chairman David Doss. “All the members support this concept of a sustainable model, which will allow us to continue to enjoy low-cost, comprehensive wholesale financial services well into the future.”
The two corporates said the transaction is unique in that it takes the form of a purchase and assumption of certain FirstCorp assets and share accounts. Legacy assets will not be acquired by Catalyst Corporate, but will remain in the FirstCorp charter until they mature or are sold at a later date. “This approach protects FirstCorp’s membership capital, which will remain at FirstCorp, and also will immunize Catalyst’s members against the risk of future losses on these assets,” said Kathy Garner, Catalyst’s president and CEO.
FirstCorp said 93.48% of its eligible members voted, with 100% of eligible votes cast for approval of the transactions associated with the P & A by Catalyst. This one-of-a-kind proposal will require approval from the NCUA and the Arizona Department of Financial Institutions, but both corporates said they do not anticipate any obstacles, as they assert this solution is, “advantageous for the members of the corporates, the regulatory agencies, and all credit unions impacted by the status of the share insurance fund.”
FirstCorp’s offices and final operations will be shut down in the weeks following the closing of the P & A.