Thursday, December 15, 2011 10:37:00 AM
ALEXANDRIA, Va. – On Wednesday, the NCUA Board approved two corporate mergers. The agency approved the merger between Treasure State Corporate Credit Union (Treasure State Corporate) of Helena, Mont. and Kansas Corporate Credit Union (Kansas Corporate) of Wichita, Kan. and awarded Catalyst Corporate Federal Credit Union (Catalyst) of Plano, Texas, the exclusive right to acquire Western Bridge Corporate Federal Credit Union (Western Bridge) of San Dimas, Calif.
In the case of Treasure State Corporate and Kansas Corporate, Kansas Corporate remains as the continuing corporate credit union.
Both corporates are financially sound but sought to merge in order to benefit from improved efficiencies and increased service volumes without significant additional expense. The merger is expected to be effective as of January 1, 2012.
Treasure State Corporate is a $230 million state-chartered corporate serving 57 credit unions. Kansas Corporate, a $315 million state-chartered corporate, serves 148 credit unions.
As conservator of Western Bridge, NCUA sought an acquisition solution that would minimize service disruption to the consumer credit union members of Western Bridge and ensure the best financial outcome for the Temporary Corporate Credit Union Stabilization Fund, the NCUA said in a release.
NCUA conserved the former Western Corporate FCU in 2009 and created Western Bridge. In 2011, the members of Western Bridge initially sought but failed to capitalize a new corporate credit union: United Resources Corporate Federal Credit Union. NCUA then conducted a competitive bidding process to identify a buyer for Western Bridge.
On Wednesday, NCUA awarded the remnants of WesCorp FCU, including computer systems and member accounts, to Catalyst Corporate FCU, formed by the recent merger of Southwest Corporate FCU and Georgia Corporate FCU.