MIDDLETOWN, Penn. –Mid-Atlantic Corporate FCU here and First Carolina Corporate Credit Union announced they have agreed in principle to merge. The $2.3-billion Mid-Atlantic Corporate serves approximately 700 credit unions; the $1.4-billion, Greensboro, N.C.-based First Carolina serves approximately 200 CUs.
If the merger is approved, Mid-Atlantic Corporate’s president/CEO, Jay Murray will serve as CEO; and First Carolina Corporate’s president/CEO David Brehmer will serve as president.
According to the two corporates plans call for a new name and with the corporate retaining offices in Pennsylvania and North Carolina. The new board of directors will have equal representations from the two existing corporates.
“At the heart of our decision to combine corporates is a belief in the cooperative model, which involves working together for the common good,” said Michael Pastirik, chairman of Mid-Atlantic Corporate. “Given the intense competition from banks, non-banks and online services, we are convinced that combining forces will ensure a cost-effective operation, as well as scaled economies from higher volumes and the opportunity to attract additional member credit unions.”
Bob Bruns, chairman of First Carolina Corporate, added, “With our shared strengths and resources, we’ll be able to help credit unions remain competitive in a rapidly changing financial and technological environment. That’s important because, going forward, credit unions need secure, innovative delivery systems and high-quality, low-cost financial products to meet their members’ growing demand for easy-access, 24/7 service.”
In a statement, Murray said the two corporates have had a working relationship for years. “We’ve collaborated on various projects, participated in regional conferences and helped each other promote the common good among member credit unions,” he said. “The combining of our organizations leverages First Carolina Corporate’s balance sheet strategy and Mid-Atlantic Corporate’s payment and information technology solutions, creating a powerful force for financial service delivery and enables us to offer an unparalleled menu of high-quality financial products and services to member credit unions.”
In the same statement, First Carolina Corporate president/CEO, David Brehmer, agreed. “Working together, we see a bright future for our combined membership,” he said. “It is rare to find two entities whose core values are so in sync, and whose organizational strengths and management complement each other so well. Both corporates are stable, have strong balance sheets and have successfully rebuilt capital. By merging from a position of strength, we’ll be able to build on our shared resources, staff talent and expertise, and mutual belief that collaboration is the best recipe for helping credit unions succeed.”
Pending NCUA’s and North Carolina regulators’ approval of the merger, it is anticipated that both Corporates’ members will be asked to approve the merger in 2016.