PHOENIX-Members of FirstCorp have officially approved a "unique consolidation" of the corporate into Catalyst Corporate FCU, Plano, Texas.
FirstCorp and Catalyst plan to consolidate 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.
"We proposed this type of consolidation with Catalyst because it offers many benefits to our member credit unions," 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 transaction is taking 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.