Proposed Merger of Southern Leagues Is Under Way

It may be one of the worst kept secrets in the credit union industry.

Unconfirmed rumors have been circulating since last year about a proposed merger of the Georgia Credit Union League with the League of Southeastern Credit Unions that represents Alabama and Florida cooperatives.

But the first public acknowledgement of the proposed consolidation did not surface until April soon after the Pennsylvania Credit Union Association and the New Jersey Credit Union League announced their merger agreement, which was recently ratified by member credit unions in each state.

“As the strategic consolidation between the LSCU & Affiliates and Georgia Credit Union Affiliates advances toward a definitive action by our board and membership, I want to make sure that all of our Alabama and Florida affiliated credit unions have an opportunity to learn more about the value proposition and post-consolidation structure you are asked to vote,” LSCU President/CEO Patrick LaPine wrote in a blog post on April 15.

Publicly, at least, both LaPine and GCUA President/CEO Mike Mercer are holding the details of the merger close to their vests.

When reached by CU Times, LaPine declined to provide additional on-the-record comments outside of his blog statements, and Mercer did not return a CU Times email and phone call requesting comment.

Since April, however, Mercer and LaPine have been holding credit union town halls throughout their states explaining the reasons for the merger, how the combined leagues would be structured and managed by executive leadership.

In a video released May 28, LaPine said Georgia’s credit union members are currently in the process of voting by mail ballot on whether to approve the proposed consolidation.

“They are expected to complete the voting by June 14, so we’ll know on the LSCU side the outcome of their vote before we head to Orlando next month,” LaPine said. Alabama and Florida credit union members of LSCU will be voting on the merger question on June 20 during the league’s annual convention in Orlando.

Because LSCU is legally domiciled in Alabama, the laws in that state does not allow member action on a proposed merger by mail or electronic ballot and the LSCU bylaws do not allow voting by proxy, according to LaPine.

If the merger agreement is approved, it will mark the 13th league consolidation since 2007.

There are 99 credit unions in Georgia, 108 in Alabama and 132 in Florida, according to the NCUA.