Indiana CU Members Vote for a Merger That Won’t Be Consummated
Ninety-six percent of Centra CU members vote to consolidate with Hoosier Hills CU, but its members vote no.
Members of the $2.2 billion Centra Credit Union in Columbus, Ind., thought merging with the $926 million Hoosier Hills Credit Union in Bedford, Ind., would have been in the best interest of both financial cooperatives.
According to Centra SVP of Marketing Chrissy Bailey, “96% of voting members cast a positive vote” on June 3. Nearly two weeks earlier, however, Hoosier Hills members rejected the proposed consolidation on May 22.
“The Indiana DFI is somewhat unique in that it requires both credit unions in a merger partnership to vote positively before the merger can take place,” Bailey said. “We felt it was important to move forward with our member vote despite the outcome of the HHCU vote so we could hear and understand our members’ thoughts on the matter.”
Centra did not disclose the number of members who voted or how many members voted in favor and against the proposed merger. Hoosier Hill reported more than 1,400 of its primary members voted but declined to release how many of them voted for and against the proposed consolidation. Under Indiana law, only primary members who have purchased a share from their credit union are permitted to vote on a merger question.
“Unfortunately, some misinformation continued to circulate despite our efforts to correct that misinformation, but the good news is that we’ve got an incredibly passionate bunch of members that really like their credit union,” HHCU President/CEO Travis Markley said. “And they don’t want to see it change.”
Both Markley and Centra President/CEO Rick Silvers said they were disappointed, but that they respected and appreciated their members’ involvement in the credit unions’ democratic process.
They noted the proposed consolidation was about preparing for the future because it would have strategically positioned the long-term viability of a unified credit union for future generations in central and southern Indiana.
The combined organization would have managed more than $3.1 billion in assets with nearly 200,000 members that would have made it the fourth largest financial cooperative in the Hoosier State by assets.