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NCUA approves Corporate One/Southeast Corp. merger

ALEXANDRIA, Va. (2/17/12)--Corporate One FCU, Columbus, Ohio, and Southeast Corporate FCU, Tallahassee, Fla., have been officially approved to merge their operations by the National Credit Union Administration.

The merger was approved at a closed NCUA board meeting Thursday.

Corporate One President/CEO Lee Butke said the merger will "create a combined organization that will be highly efficient and financially strong, with an enhanced ability to serve our combined membership bases and credit unions across the country."

The merger "is a great opportunity for our members and we are anxious to bring the merger to a conclusion," Southeast Corporate President/CEO Brad Miller added.

The two corporates announced their intent to merge on Sept. 13 and signed a definitive merger agreement on Jan. 18.

Southeast Corporate provides liquidity, investment, payment, and other back-office services to more than 400 credit unions in the Southeast U.S., and manages $3 billion in assets. The corporate also owns portfolio management, data management, and web hosting firms. Corporate One works with 780 credit unions and manages $4.7 billion in assets.

The corporates said the main goal of the merger was to preserve the collective $63 million in member capital shares (MCS) held by members at Southeast Corporate.

The capital subscription phase of the merger will begin on Feb. 17, and the corporates said that members should receive official capital documents and a ballot to vote on the merger in the next 10 days.

The Corporate One and Southeast Corporate merger will be the fourth to take place this year once it is completed.

The agency continues to manage the resolution of the corporate credit union system, and it recently unwound the payment services of the failed U.S. Central Bridge FCU. The NCUA is working to make information on the costs associated with the resolution of the corporate credit union system's problems more widely available.

This month, the NCUA cancelled its customary open board meeting, with NCUA Chairman Debbie Matz saying board members concluded there were "no essential board action items to publicly consider" at that time.
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