Centra Credit Union and Hoosier Hills Credit Union announced their intent to merge in what would be one of the most significant credit union partnerships in the state of Indiana to date.
While a formal merger agreement has been executed, the transaction is still subject to approval from regulators and members of both credit unions.
Centra, a Columbus-based credit union with roughly $2.08 billion in assets, would merge with Hoosier Hills, a Bedford-based credit union with more than $900 million in assets. The unified credit union will retain the Centra Credit Union name and is expected to have just over $3 billion in assets by the time the merger is complete.
Centra President and CEO, Rick Silvers, will remain President and CEO of the combined Centra Credit Union.
“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,” Centra President and CEO Rick Silvers said.
Hoosier Hills President and CEO Travis Markley will serve as Chief Experience Officer of the unified credit union, with the Board of Directors from each credit union combining into a single board. Board representation will be relative to each institution’s asset size and membership. 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 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,” Hoosier Hills President and CEO Travis Markley added.
For the partnership to move forward, both the National Credit Union Administration (NCUA) and the Indiana Department of Financial Institutions (DFI) must review and approve the application submitted by the two credit unions. This review is expected to take place by March of 2024. Members of both credit unions will then have the opportunity to vote on the proposed merger in the second quarter of 2024. As of today, the credit unions are targeting July 1, 2024, as the legal date of the merger.
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