IRONDALE, Ala., and METAIRIE, La. (9/18/12)--Corporate America CU and Louisiana Corporate CU announced today they no longer will pursue a merger. However, the two corporates will continue to collaborate on several projects.
Corporate America CU, based in Irondale, Ala., serves more than 500 member credit unions. Louisiana Corporate CU, located in Metairie, La., serves more than 100 credit unions. In January of 2011, they had announced their intent to pursue a merger, which would have created a $3.9 billion asset Corporate America CU, with headquarters in Irondale, serving 514 member credit unions in 26 states.
"We began the merger process more than a year ago, and while it was approved by both boards of directors and state regulators, it has remained pending at [the National Credit Union Administration]," said David Savoie, president/CEO of LaCorp, in a joint press release.
"We feel it's time to move on with key initiatives at each of our organizations. For example, LaCorp independently has raised capital and eliminated all U.S. Central dependencies, while also making sure we continue to do a good job of serving our members," Savoie added.
Corporate America Interim President/CEO Dan Buckley noted that the shifts in the corporate landscape over the past year, including the impending closure of U.S. Central FCU, make it important to go forward with independent plans rather than continuing to be in "merger limbo."
"We're focused on addressing the issues facing all corporates, such as full compliance with the revised corporate rules," Buckley said. "Paramount for Corporate America is to ensure the strength, capabilities and staff skill sets needed to serve credit unions in a new regulatory area."
Even without the merger, Buckley and Savoie said, the two corporates will continue to collaborate on various projects, as they have for many years.
One project progressing will be the enactment of an agreement for LaCorp to partner with Corporate America for disaster recovery services. "It makes sense to work with Corporate America for business recovery and continuity services," said Savoie. "Our corporates have good proximity but are far enough away from each other to make it practical as a backup site."
Buckley noted that LaCorp's member credit unions "understand the value their corporate adds to their business. At Corporate America, we also recognize the value of partnering with LaCorp by leveraging our collective strengths in the delivery of products and services to our member owners," he said.