COLUMBUS, Ind.–Two Indiana credit unions have announced plans to merge and create a near $3-billion institution.
The $2-billion Centra Credit Union in Columbus and the $889-million Hoosier Hills CU in Bedford said they are seeking to combine. The two CUs are approximately an hour apart in the southeastern region of the state.
Plans call for Centra President and CEO Rick Silvers to lead the combined organization if members approve the merger.
‘Tremendous Opportunity’
“This partnership presents a tremendous opportunity for the members of both credit unions,” said Silvers in a statement. “The lack of redundancy in this partnership means all service centers of both credit unions will remain open and all team members will have a role in the unified organization. Together, the larger organization will be more nimble, proactive, and better able to introduce products and technological advances to meet members’ needs in an ever-changing market with greater impact than either could individually. We can essentially choose the best aspects of each credit union to build a stronger and more agile unified credit union.”
The merger plan calls for board representation of the combined board to be relative to each institution’s asset size and membership. Centra CU has approximately 157,000 members; Hoosier Hills, 37,000.
The unified Centra Credit Union will also develop advisory councils representing different geographic areas of membership, to ensure the “voice of the member continues to be heard throughout the footprint,” the credit unions said.
‘Alignment in Value’
Added Hoosier Hills President and CEO Travis Markley, who would become chief experience officer of the unified credit union, “The incredible alignment in mission and values and the shared commitment to our membership and communities served as the genesis for this partnership. Once discussions began, it became immediately apparent that together, we could do so much more for our members and communities than either of us could individually as credit unions. The new, unified organization will bring new and expanded products, services, and rewards to all members as well as increased community support, resulting in an unparalleled experience for the unified credit union and its membership.”
Regulatory Approvals Required
The merger still requires approval by NCUA and the Indiana Department of Financial Institutions (DFI), as well as a vote by members.
The credit unions said they are targeting July 1 as the legal date of the merger.
Centra reported $7.3 million in net income and capital of 12.49% as of Sept. 30. Hoosier Hills posted $3.57 million and net worth of 8.8% as of the same date.
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