PLANO, Texas – The NCUA Board in closed meeting last week approved the acquisition by Catalyst Corporate FCU of Arizona’s troubled FirstCorp CU in a so-called purchase and assumption deal, continuing the revival of Catalyst, the remnants of failed Southwest Corporate FCU.
Southwest, the one-time $14 billion corporate, is one of five corporates to have failed and been liquidated by NCUA.
The deal will give Catalyst, the product now of a combination with Georgia Corporate FCU and parts of WesCorp FCU, more than $4 billion in assets and more than 1,000 members, cementing it as one of the four biggest surviving corporates, along with Alloya Corporate, Corporate One and Mid-Atlantic Corporate.
Under the P&A, certain legacy assets will not be acquired by Catalyst Corporate, but will remain in the FirstCorp charter until they mature or until they are sold at a later date and also will immunize Catalyst’s members against risk of future losses on these assets.
The corporate combination follows recent mergers of Southwest Corporate and Georgia Corporate to create Catalyst; Mid-Atlantic Corporate with Virginia Corporate; Volunteer Corporate with West Virginia Corporate and Montana’s Treasure State Corporate with Kansas Corporate.
Another combination of Alloya Corporate with CenCorp is still pending, while a proposed merger of Alabama’s Corporate America CU and Louisiana Corporate CU was recently terminated.