Two trade associations that represent credit unions in five states are taking steps to merge.
The boards of the Cornerstone League and the Heartland Credit Union Association approved plans to move forward with the due diligence process, and a letter of intent has been signed by both organizations, the groups said Thursday.
A merger between the two would create a league serving up to 718 credit unions and 14 million members. It would be led by Cornerstone League President and CEO Caroline Willard.
“We believe that the infrastructure supporting our credit unions must evolve to keep pace with the way credit unions and consumers have changed,” Willard said in the press release. “Partnering with Heartland can help both organizations do that.”
Heartland is the trade association for credit unions in Kansas and Missouri, while Cornerstone represents credit unions in Texas, Arkansas and Oklahoma. Cornerstone is the nation’s largest regional credit union trade association.
“Joining HCUA and Cornerstone together provides a unique opportunity for our leagues to maximize efforts in compliance and advocacy,” Lisa Simmons, interim CEO of the Heartland Credit Union Association, said in a press release. “This partnership will provide all credit unions access to more options to better serve their members and communities.”
After the due diligence process, the boards of both associations would need to vote on the approval of a merger agreement, and a vote of the members of both organizations would also be required.
If the merger is approved, the tentative timeline for it to become official is Jan. 1.
Two western credit union associations recently announced a similar merger. Member credit unions of the Mountain West Credit Union Association, which represents credit unions in Arizona, Colorado and Wyoming, and the Northwest Credit Union Association, which represents credit unions in Idaho, Oregon and Washington, recently voted to approve a merger effective June 30. The new, six-state trade association will represent more than 300 credit unions.
Willard said that in combining their shared strengths, Cornerstone and HCUA can help to preserve the unique role of financial cooperatives in the marketplace.
“By removing barriers on the federal, state and local level, we can fight regulatory burdens more effectively and strengthen our influence as a larger regional league,” she said.
The combined entity would operate under the Cornerstone League brand.
