Cornerstone CU League & Heartland CU Association Propose Merger
If approved, the consolidation would create a five-state league representing up to 718 credit unions and 14 million members.
Just two months after the Mountain West and Northwest credit union associations merged to create the industry’s first six-state trade group, the Cornerstone Credit Union League and Heartland Credit Union Association announced Thursday they are looking to combining their organizations.
The boards of directors for Cornerstone and Heartland said in a joint prepared statement that they signed a letter of intent to explore a consolidation pending the completion of the due diligence, a vote of both boards on whether to approve a merger agreement, and a vote of credit union members on whether to approve it.
The proposed combination would create a five-state league representing up to 718 credit unions in Arkansas, Kansas, Missouri, Oklahoma and Texas that serve 14 million members. The trade groups would operate under the Cornerstone brand name and would be led by its President/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 a joint prepared statement. “Partnering with Heartland can help both organizations do that.”
Cornerstone League Board Chair James Boyd, who is also president/CEO of the $589 million Abilene Teachers Federal Credit Union in Abilene, Texas, said in the prepared statement that Cornerstone’s proven multi-state association model can be applied to create additional value for Heartland with a centralized professional staff and with boots on the ground working in the state capitals of Topeka, Kan., and Jefferson City, Mo.
James Nastars, board chair of the Heartland Credit Union Association and president/CEO of the $1.7 billion Meritrust Credit Union in Wichita, Kan., said the time is right to consider a merger.
“Our two associations complement each other in so many ways, and our focus and commitment to credit unions align very well,” he said in a prepared statement. “By working together while still maintaining our individual state identities, it will create an even stronger league and provide our credit unions of all sizes with more opportunities to grow.”
Members of both leagues will be invited to one of what the prepared statement described as “many town hall meetings” to learn more about the consolidation, provide feedback and ask questions.
If the merger is approved, the tentative timeline for the consolidation to become official is Jan. 1, 2023.