WESTMINSTER, Colo. and WARRENVILLE, Ill. — System United Corporate Federal Credit Union, better known as SunCorp, on Wednesday announced its intent to merge with Alloya Corporate Federal Credit Union of Illinois.
It is the second merger of corporate CUs to make news this month, following the completed union of
The proposed merger still must be approved by NCUA and members of SunCorp. The next step after the completion of due diligence will be the execution of a definitive merger agreement by both corporates and submission of an application for merger to NCUA.
If approved by all parties, the deal would create the largest corporate by member count.
Tom Graham, president and CEO of Colorado-based SunCorp, said he expects his CU's members will vote approximately February 2015, shortly after regulatory approval could be received.
Prior to voting and the approval process, SunCorp said it plans to host multiple town hall meetings throughout the Rocky Mountain region.
Due Diligence
According to Graham, the selection of Alloya as a potential merger partner came after, "an extensive process of strategic planning and due diligence" by the SunCorp Board, aimed at finding the "best means to deliver excellent cooperative financial services" to SunCorp members.
"The board and management clearly saw Alloya as the best partner to help our members grow and succeed in today's competitive marketplace," Graham said in a press release.
Todd Adams, president and CEO of Alloya, welcomed the new partnership, saying, "This merger with SunCorp clearly enhances the value that all of our members will receive. Combining both organizations strengthens Alloya and helps us to assure a continued, long-term cooperative value to all credit union members from coast to coast. Retaining many key staff of SunCorp also enhances our leadership and service delivery strengths, including member contact staff in all four U.S. continental time zones."
As part of the merger agreement, Alloya said it has committed to retaining SunCorp's office and presence in Denver. Alloya also made commitments to retain member-facing staff who are familiar with SunCorp's members in Colorado, Utah, Wyoming, Nebraska and California.
The two boards have agreed to governance provisions for the combination that include two board seats and committee representation from former SunCorp board members.
Amy Sink, Alloya's chairman of the board, said, "Representation from the Rocky Mountain region is important to Alloya's board and leadership, and we welcome the talent and experience from the SunCorp board."
Alloya provides services to 1,500 member credit unions in 10 core states, plus others, including investment, financial, lending and correspondent services.
