PLANO, Texas/OVERLAND PARK, Kan.–Two more state credit union associations have announced they are exploring a merger, as the regionalization of the associations continues.
The Cornerstone League, which represents credit unions in Texas, Oklahoma and Arkansas, and the Heartland Credit Union Association, which serves CUs in Kansas and Missouri, said their respective boards have approved moving forward with the due-diligence process around a merger and have signed a letter of intent.
If approved, the five-state league would serve up to 718 credit unions that represent a total of 14 million members.
“We believe that the infrastructure supporting our credit unions must evolve to keep pace with the way credit unions and consumers have changed,” said Caroline Willard, president and CEO of the Cornerstone League. “Partnering with Heartland can help both organizations do that. By removing barriers on the federal, state, and local level, we can fight regulatory burdens more effectively and strengthen our influence as a larger regional league.”
Added Lisa Simmons, interim CEO at the Heartland Credit Union Association, “Joining HCUA and Cornerstone together provides a unique opportunity for our leagues to maximize efforts in compliance and advocacy. This partnership will provide all credit unions access to more options to better serve their members and communities.”
New Brand Planned
Upon consolidation, plans call for both organizations to operate under the Cornerstone league brand.
The organizations said that following the due diligence process, the boards of both associations would need to vote on the approval of a merger agreement, and a vote of the members of both organizations would be required as well. Members of both leagues are now being invited to one of many town hall meetings to learn more about the consolidation and provide feedback and ask questions.
If the merger is approved, the tentative timeline for the merger to become official is Jan. 1, 2023.
Other Combinations
The news comes at the same time the Mountain West Credit Union Association and the Northwest Credit Union Association to complete their merger effective June 30, with a new branch to be unveiled on July 5. The MWCUA serves CUs in Colorado, Wyoming and Arizona, while the NWCUA represents CUs in Oregon, Washington and Idaho.
Other multi-state associations include the California/Nevada leagues, the Dakotas Credit Union Association, the League of Southeastern Credit Unions (Alabama, Florida, Georgia), the Carolinas CU League, the CrossState CU Association (New Jersey and Pennsylvania), and the Cooperative Credit Union Association (Massachusetts, New Hampshire, Rhode Island and Delaware).