2 Indiana CUs Propose Merger to Create $3B CU

Two well-known Indiana credit unions announced a proposed merger Tuesday that would create a $3 billion credit union with more than 195,000 members – if members and regulators approve.

Centra Credit Union ($2 billion in assets, 157,373 members) based in Columbus, Ind., and Hoosier Hills Credit Union ($888 million in assets, 37,373 members) headquartered in Bedford, Ind., announced the proposed merger as “one of the most significant credit union partnerships in the state of Indiana to date.”

According to Tuesday’s announcement, while the formal merger agreement has been put together, members from both credit unions must vote on the merger, as well as get a sign off from the NCUA and the Indiana Department of Financial Institutions. If approved, the new credit union would retain the Centra Credit Union name and Centra President/CEO Rick Silvers will lead the merged organization.

Silvers said, “This partnership presents a tremendous opportunity for the members of both credit unions. The lack of redundancy in this partnership means all service centers of both credit unions will remain open and all team members will have a role in the unified organization. Together, the larger organization will be more nimble, proactive and better able to introduce products and technological advances to meet members’ needs in an ever-changing market with greater impact than either could individually. We can essentially choose the best aspects of each credit union to build a stronger and more agile unified credit union.”

According to other details of the merger, Hoosier Hills President/CEO Travis Markley will serve as chief experience officer of the new credit union. The Board of Directors from each credit union will then combine into a single board where board representation will be relative to each credit union’s asset and membership sizes. “The unified Centra Credit Union will also develop advisory councils representing different geographic areas of membership, to ensure the voice of the member continues to be heard throughout the footprint,” the statement read.

In a prepared statement, Markley said, “The incredible alignment in mission and values and the shared commitment to our membership and communities served as the genesis for this partnership. Once discussions began, it became immediately apparent that together, we could do so much more for our members and communities than either of us could individually as credit unions. The new, unified organization will bring new and expanded products, services and rewards to all members as well as increased community support, resulting in an unparalleled experience for the unified credit union and its membership.”

Credit union officials said regulatory review is expected to happen by March and members of both credit unions will have the chance to vote on the proposed merger sometime in the second quarter of this year. Officials are targeting July 1, 2024 as the date to legally merge.