MIDDLETOWN, Pa., and GREENSBORO, N.C. (9/15/15)--The boards of directors of two corporate credit unions--First Carolina Corporate CU and Mid-Atlantic Corporate FCU--have agreed to combine in a merger of equals, pending approval from regulators and corporate members.
The agreement in principal means that if the merger is approved, Mid-Atlantic Corporate President/CEO Jay Murray will serve as CEO, with First Carolina Corporate President/CEO David Brehmer serving as president of the consolidated corporate.
The combined corporate would get a new name and retain offices in Pennsylvania and North Carolina. Its new board will have equal representations from the two existing corporates. Pending approval by the National Credit Union Administration and North Carolina state regulators, the corporates’ members will be asked to approve the merger in 2016.
“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, Mid-Atlantic Corporate chairman, noting intense competition from banks, non-banks and online services.
Working together isn’t new for the corporates. Both “have had an excellent working relationship for many years,” Murray said. “The combining of our organizations leverages First Carolina Corporate’s balance sheet strategy and Mid-Atlantic Corporate’s payment and information technology solutions,” he added.
Brehmer noted that “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.”
Sharing resources is important, said Bob Bruns, First Carolina chairman, 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.”