WARRENVILLE, Ill. and SOUTHFIELD, Mich. – Alloya Corporate FCU (Alloya) and Central Corporate Credit Union (CenCorp) announced that their respective boards signed a non-binding letter of intent to merge the two corporates. This action allows for ongoing discussions, due diligence, and joint planning. The new organization would serve nearly 20% of the nation’s credit unions, primarily in a 10-state region spanning from the Midwest to the East Coast.
The combined corporate would continue under Alloya’s federal charter, and would operate under the Alloya name. Bill Walby, current CEO of CenCorp would become the CEO of Alloya with the headquarters located in Warrenville, Ill. Board and committee representation would reflect the combined membership.
Given the geographic distribution of the combined memberships, the boards envision significant operations to remain in Alloya’s current locations of Warrenville, Ill. and Albany, NY, as well as CenCorp’s facility in Southfield, Mich.
“While very successful in its own right, the current and future operating environment for corporates has prompted CenCorp to consider alternatives, including merger, that would enhance member value and better serve its members,” said Bill Walby, CEO of CenCorp. “A merger with Alloya would create enhanced value for both memberships in the form of significantly increased scale, additional revenue growth, reduced operating costs, and additional financial strength,” continued Walby.
“With the enactment of the amended corporate regulations in 2011, corporates have needed to orient their business plans to the new paradigm,” commented Chuck Furbee, Alloya’s CEO. “This merger would result in a corporate credit union with core markets in ten states. With a strong reputation for service through a local presence in the regions served, the combined Corporate will be staffed by an experienced team that is dedicated to serving the needs of the membership first and foremost.”
The next step after the completion of due diligence would be the execution of a definitive merger agreement by both corporates. The merger would be subject to the approval of the members of CenCorp and regulators.